Why an Osteopathic Residency in Your Hospital

1. Why an Osteopathic Residency in Your Hospital OGME Development Initiative

2. Benefits to Your Hospital • Physician Recruitment • Revenue Stream • In-House Physician Coverage • Education and Technical Expertise • Enhanced Community Relations • Status in the Community = Competitive Advantage

3. Benefits to Your Medical Staff • Expanded Referral Network • Environment of Life-Long Learning • Prestige in the Community • Loyal Cadre of Graduates • Tighter Bonds between Attendings, House Staff and Nursing • Enhanced CME Opportunity for all Medical Staff • Opportunity to Mentor and Mold Future Physicians

4. Recruiting Benefits • Grow Your Own Medical Staff • Reduced Recruiting Expenses • Known Caliber of Training • Physicians Already Known and at home in the Community

5. Patient Care Benefits • Enhanced Quality of Care • Increased Ability to Serve Unmet Community Healthcare Needs • Opportunity to Expand Scope of Services • Presence of Residents 24/7 • More Contact with Physicians • Increased Comfort Level for Nursing

6. Financial Benefits • Medicare Direct and Indirect GME Payments • Presence of Residents May Reduce Medical Staff Coverage Expenses • Potential Increase in Physician Referral Base • Funding also may be available from Medicaid, the Veterans Administration, the Health Resources and Services Administration or other federal or state programs

7. Trends Affecting Your Hospital • Physician Workforce Shortage • New Colleges of Osteopathic Medicine • Increasing Interest in Becoming an Osteopathic Teaching Hospital • Increasing Number of Osteopathic Graduates = Opportunities and Options for Your Hospital

8. Estimating Your Hospital’s Medicare Payments • Figuring DGME Payment • Calculating the IME Adjustment • Change in IME with Teaching Intensity

9. DGME Payment • Medicare’s share of costs directly related to resident training • Includes residents’ stipends and fringe benefits, supervisory physician salaries and benefits, and program administration and overhead costs • Product of the hospital’s per resident amount (PRA), Medicare utilization rate, and number of full time equivalent (FTE) residents

10. IME Payment • Recognizes a teaching hospital has higher patient care costs due to the presence of a teaching program • Includes the costs of treating sicker patients, offering more services and technology, and training residents who order more tests and are inherently less efficient in providing patient care • Product of a hospital’s teaching intensity, DRG payments, and the IME adjustment factor for the current fiscal year

11. Resources • Local Champion(s) • Physician Leadership • Medical Staff • Hospital Administration • The Hospital Board • The Community • Your OPTI • The AOA

12. For Further Information OGME Development Initiative (800) 621-1773, ext. 8010 OGMEdevelopment@osteopathic.org