CAN WE AFFORD TO START A NEW GME PROGRAM?
Germane was contacted by a medical school client to evaluate the financial outlook of one of their partner hospitals to determine the impacts of starting a new GME program within their hospital.
Germane is tasked with performing a GME Business case for starting a new GME program at a non-teaching hospital. These GME business cases help provide detailed information on the expected bottom line for the planning, development, and operational periods of new GME programs. With each hospital operating different patient coverage models and the availability of inpatient and outpatient physicians, each hospital presents unique challenges. Within these business cases, we include direct program costs related to ACGME requirements, Clinical Training Costs related to additional inpatient, outpatient, subspecialty education experiences, and Direct Resident Costs. For reimbursement, we include Medicare GME funding and any applicable state or grant funding that is available.
A 10-Year proforma was developed to outline the recommended costs and revenue for the GME programs. This analysis helps the hospital formulate what programs it can financially support long term without overcommitting its resources.
THE GERMANE EFFECT
Utilizing this analysis, the medical school and their partner hospital confirmed that GME programs were sustainable with a modest ongoing investment from the sponsoring hospital. As both an outcome and solution, the hospital and medical school have solidified an ongoing partnership to support GME. From this relationship, every resource from each partner can be more efficiently utilized.