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42 U.S.C. § 256hProgram of payments to teaching health centers that operate graduate medical education programs

submitted 82 years ago by Pub. L. 111-148 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 2,184 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Secretary pays teaching health centers to run doctor residency programs. Payments cover direct training costs and indirect costs of teaching. Centers lose at least 25% of their payment if they skip required yearly reports.

(a) Payments. (1) The Secretary must pay qualified teaching health centers, as listed by their accrediting body, for direct and indirect costs of keeping filled residency slots, expanding existing programs, or starting new ones. (2) In setting these payments, the Secretary must weigh the actual cost of training residents at these centers. (3) When funding new programs, the Secretary must favor centers that serve a health professional shortage area or medically underserved community, or that sit in a rural area. (b) Amount of payments. (1) Subject to paragraph (2), a center gets a direct expense amount (set under subsection (c)) and an indirect expense amount (set under subsection (d)). (2) (A) Total payments in a year cannot exceed the money Congress appropriated under subsection (g) for that year. (B) The Secretary must limit how many residents get funded so total direct and indirect payments stay within that appropriated amount. (C) For the period from October 1, 2023 through December 31, 2024, the Secretary may use any available money, including recouped funds, to make these payments even beyond the amount normally appropriated. (c) Amount of payment for direct graduate medical education. (1) The direct payment equals an updated national per-resident amount (set under paragraph (2)) times the average number of full-time-equivalent residents the center trained that year, counted without the resident-number limit that would otherwise apply under section 1395ww(h)(4)(F). (2) To set that per-resident amount: (A) the Secretary takes the national average per-resident amount already computed under section 256e(c)(2)(D), splits it into a wage portion and a non-wage portion, multiplies the wage portion by the prior year's area wage index (without a certain 1997 adjustment), and adds the non-wage portion back; (B) the Secretary then updates that figure however the Secretary thinks appropriate. (d) Amount of payment for indirect medical education. (1) The indirect payment is whatever amount the Secretary decides is appropriate. (2) In deciding, the Secretary must (A) look at the extra cost of running a primary care residency program at these centers, and (B) make sure total indirect and direct payments together stay within the money appropriated under subsection (g). (3) Before finishing that calculation, the Secretary may pay centers an estimated advance for expected indirect costs. (e) Clarification regarding relationship to other payments for graduate medical education. Payments under this section (1) come on top of any other Medicare graduate-medical-education payments a hospital gets under sections 1395ww(d)(5)(B), 1395ww(h), and 1395ww(k); (2) do not count toward the resident-number limits in those other sections while a resident is rotating through a hospital; and (3) do not count as time a hospital claims toward its own resident totals under those other sections or under section 256e. (f) Reconciliation. Before the fiscal year ends, the Secretary checks whether a center's reported resident numbers changed and sets a final direct and indirect payment amount, then recoups overpayments and pays balances owed. That final amount can be challenged the same way other Medicare payment decisions are challenged under section 1395oo. (g) Funding. (1) Congress may spend, until used up: $230,000,000 total for 2011 through 2015; $60,000,000 each year for 2016 and 2017; $126,500,000 each year for 2018 through 2023; $168,915,878 for 2024; $181,563,574 for 2025; $225,000,000 for 2026; $250,000,000 for 2027; $275,000,000 for 2028; and $300,000,000 for 2029. (2) The Secretary can spend no more than 5% of any year's funds on administering this section. (h) Annual reporting required. (1) Each center's yearly report must cover the prior residency year: (A) the types of primary care training programs offered; (B) the number of approved training slots; (C) how many residents finished training and now care for vulnerable, underserved populations; (D) how many patients residents treated; (E) how many patient visits residents handled; (F) of residents who finished, how many and what percent entered primary care practice; (G) of residents who finished, how many and what percent went to work in a shortage or underserved area, or in a rural area; and (H) any other information the Secretary wants. (2) (A) The Secretary may audit a center to check its report is accurate and complete. (B) A center can only get paid for resident positions above its "base level" of primary care residents, a baseline the Secretary sets. (3) (A) A center's payment drops by at least 25% if it fails to submit its report, or the report is incomplete or inaccurate. (B) Before cutting the payment, the Secretary must warn the center and give it 30 days to fix the problem; fixing it in time avoids the cut. (4) These reporting rules cover residents in part-time or full-time positions in any approved residency program at the center. (i) Regulations. The Secretary must write formal rules to carry out this section. (j) Definitions. (1) "Approved graduate medical residency training program" means a residency that counts toward specialty certification (including approved geriatric medicine programs) and meets accreditation standards set by the Accreditation Council for Graduate Medical Education, the American Osteopathic Association, or the American Dental Association. (2) A "new" such program is one the sponsoring center has never before been paid for under this section. (3) "Primary care residency program" has the meaning given in section 293l-1. (4) "Qualified teaching health center" has the meaning of "teaching health center" given in section 293l-1.
the actual law source: uscode.house.gov ↗public domain
(a) Payments
(1) In general

Subject to subsection (h)(2), the Secretary shall make payments under this section for direct expenses and indirect expenses to qualified teaching health centers that are listed as sponsoring institutions by the relevant accrediting body for, as appropriate—

(A)

maintenance of filled positions at existing approved graduate medical residency training programs;

(B)

expansion of existing approved graduate medical residency training programs; and

(C)

establishment of new approved graduate medical residency training programs.

(2) Per resident amount

In making payments under paragraph (1), the Secretary shall consider the cost of training residents at teaching health centers and the implications of the per resident amount on approved graduate medical residency training programs at teaching health centers.

(3) Priority

In making payments under paragraph (1)(C), the Secretary shall give priority to qualified teaching health centers that—

(A)

serve a health professional shortage area with a designation in effect under section 254e of this title or a medically underserved community (as defined in section 295p of this title); or

(B)

are located in a rural area (as defined in section 1395ww(d)(2)(D) of this title).

(b) Amount of payments
(1) In general

Subject to paragraph (2), the amounts payable under this section to qualified teaching health centers for an approved graduate medical residency training program for a fiscal year are each of the following amounts:

(A) Direct expense amount

The amount determined under subsection (c) for direct expenses associated with sponsoring approved graduate medical residency training programs.

(B) Indirect expense amount

The amount determined under subsection (d) for indirect expenses associated with the additional costs relating to teaching residents in such programs.

(2) Capped amount
(A) In general

The total of the payments made to qualified teaching health centers under paragraph (1)(A) or paragraph (1)(B) in a fiscal year shall not exceed the amount of funds appropriated under subsection (g) for such payments for that fiscal year.

(B) Limitation

The Secretary shall limit the funding of full-time equivalent residents in order to ensure the direct and indirect payments as determined under subsection 1 (c) and (d) do not exceed the total amount of funds appropriated in a fiscal year under subsection (g).

(C) Addition

Notwithstanding any provision of this section, for the period beginning on October 1, 2023, and ending on December 31, 2024, the Secretary may use any amounts made available in any fiscal year to carry out this section (including amounts recouped under subsection (f)) to make payments described in paragraphs (1)(A) and (1)(B), in addition to the total amount of funds appropriated under subsection (g).

(c) Amount of payment for direct graduate medical education
(1) In general

The amount determined under this subsection for payments to qualified teaching health centers for direct graduate expenses relating to approved graduate medical residency training programs for a fiscal year is equal to the product of—

(A)

the updated national per resident amount for direct graduate medical education, as determined under paragraph (2); and

(B)

the average number of full-time equivalent residents in the teaching health center’s graduate approved medical residency training programs as determined under section 1395ww(h)(4) of this title (without regard to the limitation under subparagraph (F) of such section) during the fiscal year.

(2) Updated national per resident amount for direct graduate medical education

The updated per resident amount for direct graduate medical education for a qualified teaching health center for a fiscal year is an amount determined as follows:

(A) Determination of qualified teaching health center per resident amount

The Secretary shall compute for each individual qualified teaching health center a per resident amount—

(i)

by dividing the national average per resident amount computed under section 256e(c)(2)(D) of this title into a wage-related portion and a non-wage related portion by applying the proportion determined under subparagraph (B);

(ii)

by multiplying the wage-related portion by the factor applied under section 1395ww(d)(3)(E) of this title (but without application of section 4410 of the Balanced Budget Act of 1997 (42 U.S.C. 1395ww note)) during the preceding fiscal year for the teaching health center’s area; and

(iii)

by adding the non-wage-related portion to the amount computed under clause (ii).

(B) Updating rate

The Secretary shall update such per resident amount for each such qualified teaching health center as determined appropriate by the Secretary.

(d) Amount of payment for indirect medical education
(1) In general

The amount determined under this subsection for payments to qualified teaching health centers for indirect expenses associated with the additional costs of teaching residents for a fiscal year is equal to an amount determined appropriate by the Secretary.

(2) Factors

In determining the amount under paragraph (1), the Secretary shall—

(A)

evaluate indirect training costs relative to supporting a primary care residency program in qualified teaching health centers; and

(B)

based on this evaluation, assure that the aggregate of the payments for indirect expenses under this section and the payments for direct graduate medical education as determined under subsection (c) in a fiscal year do not exceed the amount appropriated for such expenses as determined in subsection (g).

(3) Interim payment

Before the Secretary makes a payment under this subsection pursuant to a determination of indirect expenses under paragraph (1), the Secretary may provide to qualified teaching health centers a payment, in addition to any payment made under subsection (c), for expected indirect expenses associated with the additional costs of teaching residents for a fiscal year, based on an estimate by the Secretary.

(e) Clarification regarding relationship to other payments for graduate medical education

Payments under this section—

(1)

shall be in addition to any payments—

(A)

for the indirect costs of medical education under section 1395ww(d)(5)(B) of this title;

(B)

for direct graduate medical education costs under section 1395ww(h) of this title; and

(C)

for direct costs of medical education under section 1395ww(k) of this title;

(2)

shall not be taken into account in applying the limitation on the number of total full-time equivalent residents under subparagraphs (F) and (G) of section 1395ww(h)(4) of this title and clauses (v), (vi)(I), and (vi)(II) of section 1395ww(d)(5)(B) of this title for the portion of time that a resident rotates to a hospital; and

(3)

shall not include the time in which a resident is counted toward full-time equivalency by a hospital under paragraph (2) or under section 1395ww(d)(5)(B)(iv) of this title, section 1395ww(h)(4)(E) of this title, or section 256e of this title.

(f) Reconciliation

The Secretary shall determine any changes to the number of residents reported by a teaching health center in the application of the teaching health center for the current fiscal year to determine the final amount payable to the teaching health center for the current fiscal year for both direct expense and indirect expense amounts. Based on such determination, the Secretary shall recoup any overpayments made to pay any balance due to the extent possible. The final amount so determined shall be considered a final intermediary determination for the purposes of section 1395oo of this title and shall be subject to administrative and judicial review under that section in the same manner as the amount of payment under section 1395ww(d) 2 of this title is subject to review under such section.

(g) Funding
(1) In general

To carry out this section, there are appropriated such sums as may be necessary, to remain available until expended, not to exceed—

(A)

$230,000,000, for the period of fiscal years 2011 through 2015;

(B)

$60,000,000 for each of fiscal years 2016 and 2017;

(C)

$126,500,000 for each of fiscal years 2018 through 2023;

(D)

$168,915,878 for fiscal year 2024;

(E)

$181,563,574 for fiscal year 2025;

(F)

$225,000,000 for fiscal year 2026;

(G)

$250,000,000 for fiscal year 2027;

(H)

$275,000,000 for fiscal year 2028; and

(I)

$300,000,000 for fiscal year 2029.

(2) Administrative expenses

Of the amount made available to carry out this section for any fiscal year, the Secretary may not use more than 5 percent of such amount for the expenses of administering this section.

(h) Annual reporting required
(1) Annual report

The report required under this paragraph for a qualified teaching health center for a fiscal year is a report that includes (in a form and manner specified by the Secretary) the following information for the residency academic year completed immediately prior to such fiscal year:

(A)

The types of primary care resident approved training programs that the qualified teaching health center provided for residents.

(B)

The number of approved training positions for residents described in paragraph (4).

(C)

The number of residents described in paragraph (4) who completed their residency training at the end of such residency academic year and care for vulnerable populations living in underserved areas.

(D)

The number of patients treated by residents described in paragraph (4).

(E)

The number of visits by patients treated by residents described in paragraph (4).

(F)

Of the number of residents described in paragraph (4) who completed their residency training at the end of such residency academic year, the number and percentage of such residents entering primary care practice (meaning any of the areas of practice listed in the definition of a primary care residency program in section 293l–1 of this title).

(G)

Of the number of residents described in paragraph (4) who completed their residency training at the end of such residency academic year, the number and percentage of such residents who entered practice at a health care facility—

(i)

primarily serving a health professional shortage area with a designation in effect under section 254e of this title or a medically underserved community (as defined in section 295p of this title); or

(ii)

located in a rural area (as defined in section 1395ww(d)(2)(D) of this title).

(H)

Other information as deemed appropriate by the Secretary.

(2) Audit authority; limitation on payment
(A) Audit authority

The Secretary may audit a qualified teaching health center to ensure the accuracy and completeness of the information submitted in a report under paragraph (1).

(B) Limitation on payment

A teaching health center may only receive payment in a cost reporting period for a number of such resident positions that is greater than the base level of primary care resident positions, as determined by the Secretary. For purposes of this subparagraph, the “base level of primary care residents” for a teaching health center is the level of such residents as of a base period.

(3) Reduction in payment for failure to report
(A) In general

The amount payable under this section to a qualified teaching health center for a fiscal year shall be reduced by at least 25 percent if the Secretary determines that—

(i)

the qualified teaching health center has failed to provide the Secretary, as an addendum to the qualified teaching health center’s application under this section for such fiscal year, the report required under paragraph (1) for the previous fiscal year; or

(ii)

such report fails to provide complete and accurate information required under any subparagraph of such paragraph.

(B) Notice and opportunity to provide accurate and missing information

Before imposing a reduction under subparagraph (A) on the basis of a qualified teaching health center’s failure to provide complete and accurate information described in subparagraph (A)(ii), the Secretary shall provide notice to the teaching health center of such failure and the Secretary’s intention to impose such reduction and shall provide the teaching health center with the opportunity to provide the required information within the period of 30 days beginning on the date of such notice. If the teaching health center provides such information within such period, no reduction shall be made under subparagraph (A) on the basis of the previous failure to provide such information.

(4) Residents

The residents described in this paragraph are those who are in part-time or full-time equivalent resident training positions at a qualified teaching health center in any approved graduate medical residency training program.

(i) Regulations

The Secretary shall promulgate regulations to carry out this section.

(j) Definitions

In this section:

(1) Approved graduate medical residency training program

The term “approved graduate medical residency training program” means a residency or other postgraduate medical training program—

(A)

participation in which may be counted toward certification in a specialty or subspecialty and includes formal postgraduate training programs in geriatric medicine approved by the Secretary; and

(B)

that meets criteria for accreditation (as established by the Accreditation Council for Graduate Medical Education, the American Osteopathic Association, or the American Dental Association).

(2) New approved graduate medical residency training program

The term “new approved graduate medical residency training program” means an approved graduate medical residency training program for which the sponsoring qualified teaching health center has not received a payment under this section for a previous fiscal year (other than pursuant to subsection (a)(1)(C)).

(3) Primary care residency program

The term “primary care residency program” has the meaning given that term in section 293l–1 of this title.

(4) Qualified teaching health center

The term “qualified teaching health center” has the meaning given the term “teaching health center” in section 293l–1 of this title.

Source credit: (July 1, 1944, ch. 373, title III, § 340H, as added Pub. L. 111–148, title V, § 5508(c), Mar. 23, 2010, 124 Stat. 670; amended Pub. L. 114–10, title II, § 221(b), Apr. 16, 2015, 129 Stat. 154; Pub. L. 115–63, title III, § 301(a), Sept. 29, 2017, 131 Stat. 1171; Pub. L. 115–96, div. C, title I, § 3101(c), Dec. 22, 2017, 131 Stat. 2048; Pub. L. 115–123, div. E, title IX, § 50901(d)(1)–(3), (5), (6), Feb. 9, 2018, 132 Stat. 287–289; Pub. L. 116–59, div. B, title I, § 1101(c), Sept. 27, 2019, 133 Stat. 1102; Pub. L. 116–69, div. B, title I, § 1101(c), Nov. 21, 2019, 133 Stat. 1136; Pub. L. 116–94, div. N, title I, § 401(c), Dec. 20, 2019, 133 Stat. 3113; Pub. L. 116–136, div. A, title III, § 3831(c), Mar. 27, 2020, 134 Stat. 434; Pub. L. 116–159, div. C, title I, § 2101(c), Oct. 1, 2020, 134 Stat. 728; Pub. L. 116–215, div. B, title II, § 1201(c), Dec. 11, 2020, 134 Stat. 1044; Pub. L. 116–260, div. BB, title III, § 301(c), Dec. 27, 2020, 134 Stat. 2922; Pub. L. 118–15, div. B, title III, § 2321(a), Sept. 30, 2023, 137 Stat. 94; Pub. L. 118–22, div. B, title II, § 201(a), Nov. 17, 2023, 137 Stat. 119; Pub. L. 118–35, div. B, title I, § 101(a), Jan. 19, 2024, 138 Stat. 4; Pub. L. 118–42, div. G, title I, § 101(c)(1), (2), Mar. 9, 2024, 138 Stat. 397; Pub. L. 118–158, div. C, title I, § 3101(c), Dec. 21, 2024, 138 Stat. 1762; Pub. L. 119–4, div. B, title I, § 2101(c), Mar. 15, 2025, 139 Stat. 40; Pub. L. 119–37, div. F, title I, § 6101(c), Nov. 12, 2025, 139 Stat. 629; Pub. L. 119–75, div. J, title IV, § 6401(c), Feb. 3, 2026, 140 Stat. 687.)

history & why it existsrecord from the source credit
  • 1944Enacted · Pub. L. 111-148 · 124 Stat. 670
  • 2015Amended · Pub. L. 114-10 · 129 Stat. 154
  • 2017Amended · Pub. L. 115-63 · 131 Stat. 1171
  • 2017Amended · Pub. L. 115-96 · 131 Stat. 2048
  • 2018Amended · Pub. L. 115-123 · 132 Stat. 287
  • 2019Amended · Pub. L. 116-59 · 133 Stat. 1102
  • 2019Amended · Pub. L. 116-69 · 133 Stat. 1136
  • 2019Amended · Pub. L. 116-94 · 133 Stat. 3113
  • 2020Amended · Pub. L. 116-136 · 134 Stat. 434
  • 2020Amended · Pub. L. 116-159 · 134 Stat. 728
  • 2020Amended · Pub. L. 116-215 · 134 Stat. 1044
  • 2020Amended · Pub. L. 116-260 · 134 Stat. 2922
  • 2023Amended · Pub. L. 118-15 · 137 Stat. 94
  • 2023Amended · Pub. L. 118-22 · 137 Stat. 119
  • 2024Amended · Pub. L. 118-35 · 138 Stat. 4
  • 2024Amended · Pub. L. 118-42 · 138 Stat. 397
  • 2024Amended · Pub. L. 118-158 · 138 Stat. 1762
  • 2025Amended · Pub. L. 119-4 · 139 Stat. 40
  • 2025Amended · Pub. L. 119-37 · 139 Stat. 629
  • 2026Amended · Pub. L. 119-75 · 140 Stat. 687

A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-148 on 1944-07-01.

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