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Children's Hospitals Graduate Medical Education Payment Program

Public Law 108-490 

Public Law 108-490 passed by Congress and signed by the President on December 23, 2004 amends Section 340E of the Public Health Service Act which authorizes the Children’s Hospitals Graduate Medical Education Payment Program (CHGME PP).  The amendment modifies program rules regarding the determination of payments for indirect medical expenses associated with operating approved medical residency training programs and applies to payments for periods beginning with fiscal year (FY) 2005.  The amendment requires the exclusion of healthy newborns from the calculation of the case mix index and the exclusion of beds and bassinets assigned to healthy newborns from the available bed counts.  Since Public Law 108-490 is effective for payments for periods beginning with fiscal year 2005, these changes should be reflected in the hospitals’ reconciliation application for FY 2005 which will be used by the Secretary for final payment determination.  Specifically, for the FY 2005 reconciliation application, on HRSA form 99-2,  
  • Participating hospitals that included healthy newborns in their computation of the case mix index would have to re-compute the case mix index (line 1.04) after excluding healthy newborns
  • Participating hospitals should exclude from the reported available bed count (lines 1.06 and 1.10), beds or bassinets assigned to healthy newborns.
For further information contact Dr. Ayah E. Johnson at (301) 443-1058, (301) 443-6190, or by email to ChildrenHospitalgme@hrsa.gov.
 


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