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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
AHCCCS; graduate medical education; reimbursement
Purpose
Establishes a separate graduate medical education (GME) program to reimburse qualified community health centers with an approved primary care GME program. Specifies payment methodologies and reimbursement requirements.
Background
Arizona's Health Care Cost Containment System (AHCCCS) established the GME program in 1997 to reimburse hospitals that have GME programs for operational costs, such as compensation and benefits for residents and supervising faculty, as well as administrative and facility management costs associated with GME programs (A.R.S. § 36-2903.01).
GME is a program, including an approved fellowship, that prepares physicians for the independent practice of medicine by providing clinical education in a medical discipline to medical students who have completed a recognized undergraduate medical education program (A.R.S. § 36-2901).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires AHCCCS, beginning October 1, 2020, to establish a separate GME program to reimburse qualifying community health centers with an approved primary care GME program by:
a) distributing monies to qualifying community health centers for the direct and indirect costs of an approved GME program; and
b) adopting rules specifying the funding distribution formula.
2. Requires each primary care GME program that receives monies to report:
a) the number of new residency positions created with awarded monies, including positions in rural areas; and
b) information related to the number of funded residency positions that resulted in physicians locating their practices in Arizona.
3. Requires AHCCCS, by July 1, to annually report to the Joint Legislative Budget Committee (JLBC) the number of new residency positions as reported by the primary care GME programs.
4. Requires AHCCCS to coordinate with local, county and tribal governments and any state university, that may provide additional monies besides primary care GME monies, in order to qualify for additional matching federal monies for GME programs or positions in a specific locality.
5. Limits AHCCCS payments to providers designated by the funding entity based on any AHCCCS approval methodology, including the following:
a) replacing any payments that might otherwise have been paid if there were sufficient state General Fund monies; or
b) other monies were appropriated to fully fund those payments.
6. Requires AHCCCS and the Centers for Medicare and Medicaid services to approve the outlined programs, positions and payment methodologies.
7. Requires AHCCCS by July 1, to annually report to the President of the Senate, the Speaker of the House of Representatives and the JLBC Director the amount of monies contributed and the number of residency positions funded by local, county and tribal governments, and any state university, including the amount of federal matching monies used.
8. Makes conforming changes.
9. Becomes effective on the general effective date.
Prepared by Senate Research
January 30, 2020
JO/MB/gs