ECG Secures Over $3 Million in New GME Funding for Clients

On January 9, CMS announced the first of five GME cap slot distributions as part of an extraordinary opportunity for one of the only increases in funded FTE cap slots for established teaching hospitals in more than 25 years. The new, permanent cap slots will go into effect for the awarded hospitals on July 1, 2023.

Round One Award Results

While CMS did not release the total number of applications it received during round one, a total of 100 hospitals across 32 states received the first distribution of 200 new cap slots. New York had the most hospitals awarded (18), followed by Georgia (9), Florida (7), Arizona (6), and California (6). Key statistics on the distribution and the resulting impact on hospital finances include the following:

• The average cap increase was 2.0 slots for DGME and IME, respectively, with the highest award to a single hospital being 4.7 slots for both DGME and IME.
• Based on the national average reimbursement per resident FTE of $133,000,^[1] the average cap increase of 2.0 equates to $108,000 in DGME and $158,000 in IME reimbursement—an annual total of approximately $266,000 per hospital.
• In aggregate, approximately $26.6 million in additional annual GME reimbursement will be distributed to hospitals as a result of these additional cap slots.

How Can Teaching Hospitals Take Advantage?

We anticipate that applications for subsequent rounds will increase and become more competitive. Hospitals that applied for but did not receive an award during round one (e.g., due to a lower HPSA score) may reapply in round two for the same residency program. Additionally, hospitals that received an award during round one are still eligible to apply in round two for the following:

• To continue filling positions from the establishment of a new residency program or expansion of an existing residency program associated with its round one application. Specifically, the hospital was awarded FTE resident cap slots to establish a new program or expand an existing one in round one but did not receive the full amount of FTE resident cap slots it was eligible for, after prorating for participating sites.
• For a different expansion of the same residency program associated with its round one application. Specifically, the hospital applied to ACGME for a program expansion separate from the expansion associated with its round one application.
• For the establishment of a different new residency program or expansion of a different residency program than the program associated with its round one application. Specifically, the hospital received the full amount of FTE resident cap slots it applied for and wants to pursue the same for a different program.

How Can ECG Help?

ECG partnered with multiple hospitals and health systems to identify and evaluate which hospitals had the highest likelihood of success in receiving additional cap slots based on CMS’s criteria. We subsequently developed comprehensive applications for each of the 10 identified hospitals, all of which were awarded cap slots, resulting in an additional 24.2 DGME and 23.1 IME FTEs and approximately $3.2 million in new annual reimbursement.

If your hospital is operating GME programs above its cap, we are here to help you take advantage of this unique chance to secure additional federal GME funding. Applications for the second round of cap distribution are due March 31, 2023. Please contact Michelle Sonia or Andrea Bazakas with any questions or to discuss opportunities for assistance in pursuing this rare opportunity.

_{Edited by: Matt Maslin}

Published January 18, 2023