on behalf of the congressional academic medicine caucus, the … · 2019-05-09 · leonard marquez...

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Medicare’s Role in Addressing the Nation’s Physician Shortage Karen Fisher, JD AAMC Chief Public Policy Officer Janis M. Orlowski, MD, MACP AAMC Chief Health Care Officer Christopher T. Westfall, MD, FACS Executive Vice Chancellor and Dean, College of Medicine University of Arkansas for Medical Sciences Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic Medicine Caucus, the AAMC Presents a May 6, 2019, Capitol Hill Briefing on:

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Page 1: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Medicare’s Role in Addressing

the Nation’s Physician Shortage

Karen Fisher, JDAAMC Chief Public Policy Officer

Janis M. Orlowski, MD, MACPAAMC Chief Health Care Officer

Christopher T. Westfall, MD, FACSExecutive Vice Chancellor and Dean, College of Medicine

University of Arkansas for Medical Sciences

Leonard MarquezAAMC Senior Director, Government Relations

On Behalf of the Congressional Academic Medicine Caucus,

the AAMC Presents a May 6, 2019, Capitol Hill Briefing on:

Page 2: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Patient Care Education Research

Three Missions Define Academic Medicine

Page 3: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Only 5% of All Short-term, Non-Federal,

General Hospitals Are AAMC Members But

They Account for:

24% all inpatient days

22% Medicare days

26% Medicaid days

32% charity care costs

98% comprehensive

cancer centers

63% pediatric ICU beds

68% level-1 trauma centers

Medical Schools &

Teaching

Hospitals

50+%of NIH

external grant $

75% of all residents

Sources: AAMC analysis of AHA Annual Survey Database FY 2017 and NIH Extramural Research Award data.

Sources: AAMC analysis of FY 2017 AHA data, American colleges of Surgeons Level 1 trauma center designations, and National Canter Institute’s Office of Cancer Centers, 2018

Academic Medicine

Fills Major Roles in Health Care

Page 4: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

“Graduate Medical Education”

Post medical school training in a medical

school or teaching hospital-sponsored

residency program

What Is “GME?”

Page 5: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

• Teaching hospitals incur costs other hospitals don’t:

residents’ stipends & benefits, faculty time, administration &

overhead

• Since 1965, Medicare has helped offset these costs

• Today Medicare is the single, largest payor of GME

The Cost of GME

Page 6: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

“DGME:” Direct GME Payment Policy

• Medicare reimburses teaching hospitals for “Medicare’s

share” of teaching hospitals’ costs of training residents

• Medicare’s share of the cost is based on a teaching

hospital’s Medicare inpatient volume - about 30% to 40%

Medicare DGME Payments

Page 7: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

• BBA of 1997 Capped the # of Residents a Teaching Hospital

Can Count for Medicare GME Payments at FY 1996 Level

• Teaching Hospitals Now Train about 15,000+ Residents over

their Hospital-Specific Caps

Limits on Medicare

GME Payments

Page 8: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Teaching Hospital DGME CostsFY 2016

$14.71* Billion in

DGME Costs Not

Paid for by

Medicare

Total DGME

Costs for Al

Teaching

Hospitals in

FY 2016 =

$18.5 Billion

$3.79 Billion in Medicare

DGME Payments

Medicare Paid

Only 20% of

Total GME

Costs of All

Teaching

Hospitals in

FY 2016

Medicare DGME PaymentsCover 20% of Total DGME Costs

Page 9: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Janis M. Orlowski, MD, MACP

AAMC Chief Health Care Officer

Washington, DC

Workforce AnalysisProjected Physician Shortage

Page 10: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2015 AAMC. May not be reproduced without permission.© 2019 AAMC. May not be reproduced without permission.

Page 11: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2015 AAMC. May not be reproduced without permission.© 2019 AAMC. May not be reproduced without permission.

Primary Care

Shortfall

21,100 – 55,200

Specialty Care

Shortfall

24,800 – 65,800

Physician Workforce Shortage ProjectionsBy 2032, Physician Shortfall of 46,900 – 121,900

* Projections don’t add up because of microsimulation model used

Source: I.H.S. Markit Inc., The Complexities of Physician Supply and Demand 2019 Update: Projections from 2017 to 2032. Prepared for the Association of American Medical Colleges. Washington, DC: Association of American Medical Colleges.

In the next decade, 2 in 5

physicians will be over 65 and

could retire.

Page 12: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2015 AAMC. May not be reproduced without permission.© 2019 AAMC. May not be reproduced without permission.

Total Projected Physician Shortfall Range, 2017-2032

Source: I.H.S. Markit Inc., The Complexities of Physician Supply and Demand 2019 Update: Projections from 2017 to 2032. Prepared for the Association of American Medical Colleges. Washington, DC: Association of American Medical Colleges.

Page 13: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2015 AAMC. May not be reproduced without permission.© 2019 AAMC. May not be reproduced without permission.

Size and Range of Projected Shortages Varies by Specialty

Source: I.H.S. Markit Inc., The Complexities of Physician Supply and Demand 2019 Update: Projections from 2017 to 2032. Prepared for the Association of American Medical Colleges. Washington, DC: Association of American Medical Colleges.

Page 14: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2015 AAMC. May not be reproduced without permission.© 2019 AAMC. May not be reproduced without permission.

Estimated additional physicians needed if U.S. had achieved Health Care Utilization Equity in 2017

Scenario 2:

Insurance, Metro/Non-

metro, & Race/Ethnicity

95,900Additional Physicians

Scenario 1:

Insurance & Metro/

Non-metro

30,800Additional Physicians

Source: I.H.S. Markit Inc., The Complexities of Physician Supply and Demand 2019 Update: Projections from 2017 to 2032. Prepared for the Association of American Medical Colleges. Washington, DC: Association of American Medical Colleges.

Page 15: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2015 AAMC. May not be reproduced without permission.© 2019 AAMC. May not be reproduced without permission.

U.S. MD enrollment expected to exceed 30% increase

15,000

16,000

17,000

18,000

19,000

20,000

21,000

22,000

23,000

2002 2005 2008 2011 2014 2017 2020 2023

US

MD

FIR

ST

YE

AR

EN

RO

LLM

EN

T

Original

schools

(n=125)

All Schools (n=145)

30% over 2002

Historical Data Survey Data Projections

Source: AAMC 2016 Medical School Enrollment Survey Report

Page 16: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2015 AAMC. May not be reproduced without permission.© 2019 AAMC. May not be reproduced without permission.

Drivers of the Projected Physician Shortage

Growing Population

Changes in Healthcare

Physician Retirement

Aging Population

10,000

12,500

15,000

17,500

20,000

23,000

28,000

33,000

38,000

43,000

48,000

53,000

58,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PH

YS

ICIA

NS

TU

RN

ING

65

RE

SID

EN

TS

/PO

P. 6

5+

IN

TH

OU

SA

ND

S

Residents entering ACGME Pop 65+ Physicians turning 65

Production of new physicians are not keeping up with aging workforce and populationSource: ACGME, Census, AMA Physician Masterfile; US Census Bureau

Page 17: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2015 AAMC. May not be reproduced without permission.© 2019 AAMC. May not be reproduced without permission.

Strategies to Meet the Need

• Physician education in team-based, interprofessional care; development of innovative

care delivery and payment models; integration of cutting-edge technology and

research into patient care environments

• Address the freeze by adding 3,000 new residency positions each year for the next 5

years

• Federal incentives and programs designed to recruit a diverse workforce and

encourage physicians to enter shortages specialties and practice in underserved

communities

Page 18: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Medicare GME Policy

Christopher T. Westfall, MD, FACS

Executive Vice Chancellor & Dean, College of

Medicine, University of Arkansas for Medical

Sciences, Little Rock, AR

The Arkansas Perspective

Page 19: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Insert Dr. Westfall’s slides

Page 20: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Leonard Marquez

AAMC Senior Director, Government Relations

Washington, DC

Medicare GME Cap Bills

Page 21: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

“Resident Physician Shortage Reduction Act of 2019”

• Bill Purpose: Increase # of Medicare-supported residency slots

nationally by 3,000 per year from 2021 to 2025 (total increase = 15,000

slots)

• S. 348: Sens. Menendez (D-NJ), Boozman (R-AR), Schumer (D-NY)

• H.R. 1763: Reps. Sewell (D-AL) and Katko (R-NY)

Medicare GME Cap Bills

Page 22: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Both S. 348 and H.R. 1763:

• Half of new slots each year must be used for residents in new shortage

specialty training program

• Examples of criteria for selecting hospitals to receive new slots:

• Provide rural training

• Provide community training

• Train residents over the hospital’s cap

Resident Physician Shortage

Reduction Act of 2019

Page 23: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

“Opioid Workforce Act of 2019”

• Bill Purpose: Increase # of residency slots available to qualifying

hospitals by 1,000 nationwide from 2021 - 2025

• HR 2439: Introduced by Reps. Schneider (D-IL), Susan Brooks (R-IN),

Kuster (D-NH), Stefanik (R-NY)

• Senate: Bipartisan bill to be introduced soon

Medicare GME Cap Bills

Page 24: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

HR 2439:

• Eligible hospitals must have or demonstrate they will have a training

program in addiction medicine, addiction psychiatry, and/or pain mg’t.,

as well as the necessary prerequisite program (e.g., internal medicine)

• No hospital may receive more than 25 slots

Opioid Workforce Act of 2019

Page 25: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

• Office of Sen. Menendez: Swarna Vallurupalli ([email protected])

• Office of Sen. Boozman: Ryan Losak

([email protected])

• Office of Sen. Schumer: Matt Fuentes([email protected])

• AAMC: Len Marquez, [email protected]

Ally Perleoni, [email protected]

For More Information

Senate Offices and AAMC

Page 26: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

• Office of Rep. Sewell: Hillary Beard

([email protected])

• Office of Rep. Katko: Jennifer Wood

([email protected])

• Office of Rep. Schneider: Vic Goetz

([email protected])

• Office of Rep. Brooks: Erin McMenamin

([email protected])

For More InformationHouse Offices

Page 27: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

Medicare GME Policy

Questions?

Page 28: On Behalf of the Congressional Academic Medicine Caucus, the … · 2019-05-09 · Leonard Marquez AAMC Senior Director, Government Relations On Behalf of the Congressional Academic

© 2017 AAMC. May not be reproduced without permission.© 2018 AAMC. May not be reproduced without permission.