Teaching hospitals training over their graduate medical education (GME) caps have limited opportunities to receive additional funding from Medicare. Therefore, it's important to note the upcoming March 31, 2025, deadline to apply for two upcoming distributions of Medicare-funded residency positions:
- Hospitals planning residency programs in psychiatry or psychiatric subspecialties should consider applying for the newest distribution of Medicare-funded GME residency positions (GME Cap Slots) authorized by Section 4122 of CAA 2023; and
- Hospitals planning residency programs for which at least 50 percent of the training would occur in a training site physically located in a primary care or mental health geographic HPSA are better positioned to apply for the next round (Round 4) of Section 126 GME Cap Slot awards based on CMS's modifications to the distribution methodology.
Our previous article "Noteworthy GME Payment Policies and Opportunities for Residency Slots in CMS's FY 2025 IPPS Final Rule" includes more detailed descriptions and eligibility information related to each of these distributions.
Below are links to CMS frequently asked questions and application information:
- Section 126 of the Consolidated Appropriations Act, 2021 (round 4 applications):
- Section 4122 of the Consolidated Appropriations Act, 2023:
Both distributions require hospitals that apply to have a "demonstrated likelihood" that any awarded slots will be used for a new residency program or an expansion of an existing program so residency program planning needs to be considered in advance of the application deadline.
