NC S742

Department of Health and Human Services shall study options to modify graduate medical education (GME) payments and other reimbursements to incentivize rural healthcare providers to participate in medical education programs and address state health needs.

Study must examine changes to Medicaid GME reimbursement after the 1115 waiver approval, coordination of Area Health Education Centers funding, and other relevant issues; report due to legislative committees by October 1, 2018.

Department shall conduct separate study to identify rural hospitals seeking teaching hospital designation from Centers for Medicare and Medicaid Services, determine required technical assistance, and calculate expected costs.

Second study must examine expansion of GME payments to outpatient services, modifications to cost-finding and reimbursement formulas, physician reimbursement incentives including geographic add-ons for rural areas, and other relevant issues.

Interim report on teaching hospital study due October 1, 2018, with final report due October 1, 2019; act becomes effective upon passage.