Corporate Compliance

Iraq spending bill eases burden on teaching hospitals

Healthcare Auditing Weekly, June 5, 2007

President George W. Bush's approval of the Iraq war spending bill not only affected the military and Congress, but also the way academic medical facilities are funded. By signing the spending bill last week, Bush approved a temporary ban on CMS' proposed changes to how hospitals fund programs that train physicians-alterations proposed in his budget.

The Bush administration wanted to eliminate federal Medicaid payments given directly to hospitals as a match to state money. Hospitals in 46 states use that pool of money to help pay for their residency programs, which the administration says is inappropriate.

CMS will hold off on the proposed changes for at least one year, but the administration is likely to look at such measures again, as they could save CMS $1.8 billion through 2012.

Source: St. Louis Post-Dispatch

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