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Children's Hospitals Graduate Medical Education
Payment Program

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News

ALERT

  • October 20, 2004 Conference Call

    Information and Registration

    The October 4, 2004 Federal Register (69 FR 59259) announces a Children's Hospitals Graduate Medical Education Payment Program (CHGME PP) conference call which will be held on Wednesday, October 20, 2004 from 1:30 PM to 3:30 PM (EST). The agenda for the conference call will include, but not be limited to: (1) welcome and opening comments; (2) news releases/updates; (3) reminders; and (4) "on the horizon" topics of interest. Time will also be available for a question and answer period. Agenda items are determined as priorities dictate.

    All interested parties who wish to participate in this conference call must register in advance. Conference call registration can be accomplished by completing the attached registration form and faxing it to (301) 443-1879. Registration forms must be received by close of business, Friday, October 15, 2004. An agenda and additional conference call information will be emailed to the primary contact identified for registered participants one (1) day prior to the scheduled conference call. Registrants will be notified of a cancellation.

    If you have additional questions or we may be of further assistance, please contact your regional manager.

  • TIMELINE FOR RECONCILIATION PAYMENTS

    This notice finalizes the closing date for incorporating hearing determinations by the Provider Reimbursement Review Board (PRRB) for Federal fiscal year (FFY) payment purposes in the Children’s Hospitals Graduate Medical Education Payment Program (CHGME PP). Specifically, for FFY 2004 the final date will be July 15. June 30 will be the final date for subsequent years. If the PRRB has not reached a decision by such date, determining the actual number of full-time equivalent residents in a particular case, the departmentally overseen decision of the CHGME fiscal intermediary (FI) will stand. A PRRB decision after such date would be taken into account for payment determinations in the next FFY.

    On June 4, the Department issued a notice seeking comments on the establishment of a final deadline for PRRB decisions under the CHGME PP. In response to the proposal, the Department received six sets of comments from interested parties. Several respondents recognized the need to establish deadlines for an annually funded program in which all hospitals are statutorily tied together though differing on what the exact date should be. As explained in the initial proposal, July 15 for FFY 2004, and June 30 for subsequent years was chosen to ensure that the CHGME PP has time to:

  1. make payment adjustments to all participating hospitals based on the reconciliation applications;
  2. issue recoupment notices for overpayment if needed; and,
  3. redistribute any recouped funds within the FFY. These requirements are statutory. The date also allows some time for the Health Resources and Services Administration (HRSA) Administrator’s review if necessary.

The Department also received comments underlining the tension between an annually funded program and the statutory right of review. While these commenters objected to deadlines of any form, they failed to outline any mechanism through which the CHGME PP could complete its statutory –and indeed constitutional— obligation to disburse all funds prior to the close of the FFY. Therefore, the Department will adopt the proposed deadlines.

Finally, the Department received comments on the best way to conduct the auditing process during the FFY and what statutory changes would be needed to minimize disruption both before the PRRB and to operate the CHGME PP more efficiently. The CHGME PP has no authority to change statutory provisions. Secondly, the CHGME PP’s established, yet evolving, auditing process is designed to conciliate all interested parties, including participating hospitals, CHGME FIs, the Department and the PRRB. The statutorily compressed time for application, audit, dispute resolution and reconciliation requires some adaptation on the part of all participants.

As stated in the proposal, the PRRB has done a remarkable job of expediting hearings for this unique program. However, the reasoned decision making required both at the PRRB and at the HRSA Administrator level will suffer if forced through a hurried process. Although the July 15 and June 30 in future years-deadline may present a challenge for resolving any remaining disputes before the PRRB, the Department must fulfill its statutory mandate and duty to all participating hospitals. Continuing PRRB cases may not necessarily be mooted. A Board decision after such date would be taken into account for payment decisions in the next FFY.

For further information contact Ayah E. Johnson Ph.D., Chief, Graduate Medical Branch, Division of Medicine and Dentistry, Bureau of Health Professions, HRSA, Room 9A-05, Parklawn Building, 5600 Fishers Lane, Rockville Maryland 20857; or by e-mail to ChildrensHospitalGME@hrsa.gov; or by phone at (301) 443-1058 or (301) 443-6190.

About the Children's Hospital GME Payment Program

The CHGME Payment Program provides funds to freestanding children’s hospitals to support the training of pediatric and other residents in graduate medical education (GME) programs. This program compensates for the disparity in the level of Federal funding for teaching hospitals for pediatrics versus other types of hospitals.

To be eligible for funding, by statute (Public Law 106-310), a children’s hospital must meet all of the following criteria:

  • Participates in an approved graduate medical education (GME) program

  • Has a Medicare Provider Agreement

  • Is excluded from the Medicare inpatient prospective payment system (PPS) under section 1886(d)(1)(B)(iii) of the Social Security Act, and its accompanying regulations

  • Is a “freestanding” hospital

A hospital remains eligible for payments as long as it trains residents as a “freestanding” children’s hospital during the fiscal year for which CHGME Payment Program payments are made.

Hospitals Potentially Eligible to Participate in the CHGME Payment Program

 


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