Ask the expert: What is the difference between IME and DME payments?
Residency Program Connection, November 10, 2009
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Funding for GME is right in the middle of the national healthcare debate. Although GME funding is complicated and there are several sources of funding, the Centers for Medicare & Medicaid Services (CMS) is the largest funder of GME training. There are two types of payments:
Direct payments (DME): These payments cover a portion of the direct costs of training residents, including stipends, teaching physician and resident salaries and benefits, and educational activity costs. DME is based on a prospectively determined per-resident amount, weighted FTEs, and Medicare patient load.
Indirect payments (IME): These payments compensate for the anticipated higher cost of care in teaching hospitals based on the ratio of FTEs to hospital beds. A portion of these funds are disproportionate care funding, which subsidizes uncompensated care.
Today’s question and answer are from The Complete Residency Program Management Guide, published by HCPro Inc..
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