Association of American Medical Colleges (AAMC)

On May 23, 2007, the Centers for Medicare and Medicaid Services (CMS) issued proposed rules that would eliminate federal matching funds for Medicaid graduate medical education (GME) payments to the nation’s teaching hospitals.

 The CMS has also finalized a second rule that imposes new restrictions on payments to health care providers operated by
units of governments that will eliminate another key source of Medicaid funding.

Unless Congress acts to stop these rules beforeMay 25, U.S. teaching hospitals in 47 states and the District of Columbia will lose at least $1.7 billion in federal GME support, jeopardizing the physician training and vital patient care services on which all Americans depend.