CMS brings new Medicare-funded accommodations to hospitals in underserved communities

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The Centers for Medicare and Medicaid Services has allocated the first 200 of 1,000 Medicare-funded residency slots for physicians to support healthcare workers and fund additional positions in hospitals serving underserved communities.

About three-quarters of the new positions will be for primary care and mental health professionals, CMS said.

“These graduate residency awards will help address care access and labor shortages in the most sought-after areas,” said CMS administrator Chiquita Brooks-Lasur. “Most job openings are for primary care and mental health professionals, who form the backbone of our healthcare system. I encourage potential applicants to apply for the next application period, which opens in just a few weeks.”

WHAT INFLUENCES

Fiscal Year 2022 Final Rule of the Inpatient Advance Payment System (IPPS) developed a policy to roll out 1,000 new Medicare-funded residency slots at qualifying hospitals approved by the Consolidated Appropriations Act of 2021, phasing in 200 slots per year over five years.

In allocating these new residency slots, CMS has prioritized hospitals with training programs in geographies showing the greatest need for additional providers, as determined Areas of medical worker shortage. The first round of 200 residency slots is for 100 teaching hospitals in 30 states, Washington DC and Puerto Rico, and will go into effect July 1.

Of these postgraduate direct medical education places, 125 residency places are dedicated to primary health care (including OB/GYN) and 20 to psychiatry.

CMS framed the move as progress in improving access to critical services, including those needed to overcome the mental health crisis, in rural and underserved communities, as outlined in a report from the Department of Health and Human Services. Initiative to Strengthen Primary Health Care and CMS Behavioral Health Strategy.

The application period for the second round of 200 residency positions will begin later this month and end on March 31st.

BIG TREND

This is the largest increase in Medicare-funded residency places in more than 25 years, CMS said. Other sections of the ongoing 2021 Consolidated Appropriations Act are helping expand rural education and increase postgraduate medical education payments to eligible hospitals.

IN RECORDING

“Prioritizing these awards to areas that need the most support will strengthen the workforce as well as equip new providers with a unique understanding of the specific needs of these communities,” said Dr. Mina Seshamani, Associate Administrator and Director of the Medicare CMS Center. “This is critical to achieving our goals of providing high quality care to all people.”

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