**Significant Health Policy Reform Announced: MHA’s New Licensing Act for Fee Structures and Cost Reporting Takes Effect** This article discusses the key aspects of the licensing reform introduced by the Medicare Payment Advisory Commission (MedPAC) for

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Healthcare Innovation & Challenges: Funding, Shutdowns, and Relocations

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How will the shift to per-resident payments, mandated for Fiscal Year 2023, likely impact smaller hospitals with limited GME programs compared to larger academic medical centers?

significant Health Policy Reform Announced: MHA’s New Licensing Act for Fee Structures and Cost reporting Takes Effect

The healthcare landscape is undergoing a significant shift with the implementation of the Medicare Payment Advisory Commission (MedPAC)’s new licensing act. This reform,impacting hospital fee structures and cost reporting for Graduate Medical Education (GME),prioritizes transparency,accountability,and innovation in medical training. This article details the key changes, compliance guidelines, and implications for hospitals and GME programs.

Understanding the Core of the Reform

Effective December 26, 2019, the MHA’s new regulations address long-standing concerns regarding the financial complexities of GME funding.The core objective is to move towards a more predictable and efficient system, reducing potential liabilities for hospitals while concurrently enhancing the quality of medical education. Key aspects of the reform include:

* Enhanced Cost Reporting: Hospitals will face more stringent requirements for detailing costs associated with GME programs. This includes a granular breakdown of expenses related to resident education, faculty support, and program administration.

* Innovative Fee Structures: The act encourages hospitals to develop and implement innovative fee structures beyond traditional models. This allows for flexibility in rewarding effective teaching and promoting efficient resource allocation.

* focus on Effectiveness & Efficiency: Cost reporting will now heavily emphasize the effectiveness of GME programs – demonstrating positive patient outcomes and skill growth – alongside traditional efficiency metrics.

* preventing Medicare Liabilities: A primary goal is to minimize the risk of financial penalties or liabilities for hospitals related to Medicare GME payments.

The Transition to Per-Resident Payments

A major component of the reform involves a restructuring of the GME payment system. MedPAC, in collaboration with the health and Human Services (HHS), is transitioning from a reimbursement system to a per-resident, per-year payment model.

* Timeline: The final rule mandates full compliance with this new system starting in Fiscal Year 2023.