Medicare-funded medical residencies falling short of goals: Report
Interview transcript:
Terry Gerton I suspect that most people don’t know that Medicare funds graduate medical education. This is a topic you’ve looked into quite a bit at GAO. Give us an overview of this situation first.
Leslie Gordon Medicare is the biggest funder of graduate medical education. There are a number of federal programs that fund graduate medical education, but Medicare is the primary funder, funding about $22 billion in 2023. We’ve been looking at it over a course of years, because that’s a chunk of change to look at and understand if it’s being effective. Over the course of our work in 2017, 2018, we’ve noticed that there’s a misalignment; there’s an unevenness in how medical residency is distributed across the country and where those graduate medical education dollars go.
Terry Gerton How’s it supposed to work?
Leslie Gordon Well, the impetus behind funding for graduate medical education is to ensure we have a well-trained workforce. And indeed, it should be distributed across the country so that people have access to services. And Medicare cares about having trained providers to care for all the Medicare beneficiaries across the country.
Terry Gerton So the Consolidated Appropriations Act of 2021, if we can take our minds back that far, put in some provisions maybe to try to address this misallocation of graduate medical education, and you’ve just published a report on that. Tell us about what you found in terms of the first three years of this program.
Leslie Gordon Our report is an interim report. The Consolidated Appropriations Act of ’21 funded 1,000 new residency positions. That’s in a framework of over 163,000 medical residents. So it’s not a lot of positions, but it’s designed to alleviate situations where hospitals would like to expand, or smaller hospitals would like to open new medical residency programs, and to direct some attention to underserved communities.
Terry Gerton And as you looked at the distribution of those thousand positions, what did you find?
Leslie Gordon We found that awarded hospitals were very similar to those that applied who were not awarded. So we did a comparison to look at, were there any biases in how these positions were being distributed when CMS was distributing them? Or, did they follow the rules and the categories set out in the CAA? And generally, the awardees and those that were not awarded were similar in nature. There was an effort and an impetus to focus on underserved areas, particularly rural areas, as we noted earlier. And while there wasn’t a redistribution of a majority of positions going to rural areas, there was an emphasis and a success in funding the rural hospitals that applied. Ten rural hospitals applied, nine were awarded. That’s different from about 50% of urban hospitals that applied that were awarded.
Terry Gerton Sounds like this really didn’t get to the crux of putting more residents in urban hospitals.
Leslie Gordon It didn’t put more residents necessarily in urban hospitals. It put more residents everywhere, let me say that. It emphasized and allowed for more residency positions and programs in rural and underserved areas. But with a small portion of residencies that were being awarded, it’s a big pile to redistribute and only have a thousand pieces with which to do that.
Terry Gerton I’m speaking with Leslie Gordon. She’s director for Medicare at GAO. Are there particular issues that the smaller or rural hospitals faced in terms of applying for this program or really making the best use of the resources that could potentially be available?
Leslie Gordon In the course of our work, we talked to representatives from hospitals in all kinds of areas, including rural hospitals. We talked to some hospitals and we talked to hospital associations. We heard that CMS’s use of the health professional shortage area as the primary criterion for distributing and allocating prioritization of who would be awarded got in the way for some smaller communities and those that might be training in rural areas or serving rural residents that traveled out of their local area to seek care. The way in which it didn’t quite land for rural areas is that the HPSA score is based on a population-to-provider ratio. And if you add one new doctor to population of a thousand people, that can really change the score a lot, as opposed to adding one new doctor to a population of 200,000 people. In that way, it wasn’t quite aligned with the goal of focusing on rural areas.
Terry Gerton And so, are there changes that CMS could make to this distribution model in the last couple of years of this program to help address those shortcomings?
Leslie Gordon We provided this feedback and other feedback to CMS as a part of the course of our work. They have two more rounds to distribute. And one of the things we also learned about is that hospitals needed other funding to make good use of these additional spots, these additional residency spots. I think being more aware of upfront costs, the need to maintain accreditation, and some of the challenges that we highlight in our report will help CMS, perhaps, and those who apply.
Terry Gerton If CMS does adjust the criteria or support, are there metrics that they should track to make sure that the changes are working?
Leslie Gordon CMS is tracking the metrics that were set out in the Consolidated Appropriations Act, and we will be looking at and reporting again in 2027.
Terry Gerton So when you think about this over the next couple of years, are there things that Congress, or educators, or other folks should watch to gauge whether or not these new slots are meeting workforce goals? Are they helping advance the accreditation or the certification of young medical students?
Leslie Gordon I think the experience of awarding these positions helps highlight that it’s not just funding that will solve the problem in terms of distribution of medical residency. There’s a support infrastructure that needs to be there in terms staffing, in terms equipment, in terms considering the types of experiences that medical residents need to have to be fully trained. So we cover all these things in our report and I think that this experience with the allocation of the thousand positions helps highlight all the infrastructure that’s needed to support medical residency training.
Terry Gerton Are there companion programs designed to address those infrastructure shortcomings?
Leslie Gordon The federal government actually has 72 programs. Yes, there’s a lot of programs and there are 72 health care workforce programs. And we have open recommendations from our prior work that HHS needs to examine the gaps in the workforce and take action to address those gaps and needs to communicate around them. We have other open recommendations that they don’t have the information necessary to identify and evaluate the cost effectiveness of those 72 programs. So we do have open work, not directly related to this report, but we have open recommendations that focus in on the need to have better information and truly evaluate the effectiveness of all of the Work First programs in a comprehensive way.
Terry Gerton And do you have a sense that CMS and HHS are taking on that task to sort of harmonize all of these programs so that they make sense and they are optimized for best outcomes?
Leslie Gordon They are making progress on our recommendations and we will continue to follow up to see how they progress.
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