Update from the Chronicle of Higher Education (5/30/2007): "Teaching hospitals that stood to lose at least $1.8-billion in Medicaid funds from a regulatory change proposed last week received a one-year reprieve on Friday in budget legislation approved by Congress." (article in the CHE is by K. Mangan)

Hopefully the AMA, AAMC, and others will make their voices heard on the issues.-EB

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From the Federal Register May 23, 2007:
This proposed rule would clarify that costs and payments associated with Graduate Medical Education programs are not expenditures for medical assistance that are federally reimbursable under the Medicaid program

The Centers for Medicare & Medicaid Services (CMS), US Dept. of Health and Human Services (HHS) have released a new rule proposal which would disallow Graduate Medical Education (GME) as an expenditure that is federal reimbursable by Medicaid.

Medicaid is a federally and state funded program designed to provide a safety net to low income parents, children, seniors, and individuals with disabilities.

"So what?" you may be asking.

Many medical schools and hospitals, including Stanford Med School and Stanford Hospital, are dependent on direct and indirect federal reimbursement of graduate medical education (the training of interns and residents) from both Medicaid and Medicare to help pay for the costs of running a teaching facility.