Finance Cases
The Client
Germane Solutions was contacted by a hospital system with three main teaching hospitals that span the country. They have shared rotational arrangements between each site which allows them to participate in Medicare GME Affiliation Agreements (MGMEAAs). MGMEAAs allow hospitals to transfer cap positions from one site to another.
The Challenge
The health system is currently participating in MGMEAAs and transferring their Indirect Medical Education (IME) cap across various sites, sending more cap positions to hospitals that receive higher reimbursement. They wanted to ensure that the current agreements were maximizing their Medicare reimbursement.
The Solution
Germane Solutions partnered with the health system to assess the agreements and identify opportunities for increased reimbursement. Germane Solutions maximized the IME cap sharing agreements and introduced cap sharing for the Direct Graduate Medical (DGME) cap positions. This change allowed the health system to recognize a projected $3.6M in revenue annually without any significant changes to operations.
The Germane Effect
Through Germane Solutions' strategic evaluation and restructuring of the MGMEAA, the health system is now positioned to optimize its Medicare reimbursements across its three main teaching hospitals. The introduction of cap sharing for both Indirect Medical Education (IME) and Direct Graduate Medical Education (DGME) caps has solidified their financial standing and created a sustainable revenue stream projected to bring in $3.6M annually. This significant financial improvement was achieved without requiring disruptive operational changes, showcasing Germane Solutions’ ability to deliver targeted, high-impact solutions that align with the health system's long-term financial goals.