Should training for physicians be subsidized when other graduate programs aren't?

Did you know that Medicare has furnished the bulk of money for graduate medical education since its inception in 1965? It’s
done through direct payments to cover administrative costs and
salaries of faculty and residents, and indirect payments made to hospitals from taking care of seriously sick patients requiring longer and more expensive stays. The rest is provided by Medicaid, the Veterans Administration, hospitals and private sources such as foundations and gifts.

So why does graduate medical education have to be subsidized when other graduate programs are not?

Americans generally feel this is a public good and a rational policy to train an excellent medical work force for the country. Besides, interns and residents provide vital services to hospitals particularly in taking care of indigent patients.

The problem, like with so many other government sponsored or subsidized programs, is that the funding has dried up. One of the reasons for this is the the “1997 Balance Buget Act” that reduced Medicare funding for graduate medical education (and capped the number of residency training programs).

Program directors have grave concerns that the shrinking Medicare budget for graduate medical education is going to threaten the viability and quality of some training programs, even as the need for physicians grows due to the aging (and growing) number of Medicare enrolless, and the expected shortage of doctors.

The Council on Graduate Medical Education, created in 1987 to advise Congress about medical issues, has recommended revamping the current funding program. They insist that, besides Medicare, an all-payer system should be implemented and to eventually require more funding from commercial insurers and institutions sponsoring these training programs.

The good news? If you’re considering a medical career, now may be the best time to get signed up. Recognizing the shortage of doctors, many Universities are now scrambling to put together the best financial aid packages, subsidies and funding they can find. And with the coming need for physicians in the future, you’ll never be out of work!

technorati tags:doctoral, programs, medical, graduates, aging, population, physican, shortage

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