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<bill bill-stage="Introduced-in-Senate" public-private="public">
	<form>
		<distribution-code display="yes">II</distribution-code>
		<congress>112th CONGRESS</congress>
		<session>2d Session</session>
		<legis-num>S. 3201</legis-num>
		<current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber>
		<action>
			<action-date date="20120517">May 17, 2012</action-date>
			<action-desc><sponsor name-id="S259">Mr. Reed</sponsor> (for himself
			 and <cosponsor name-id="S243">Mr. Kyl</cosponsor>) introduced the following
			 bill; which was read twice and referred to the
			 <committee-name committee-id="SSFI00">Committee on
			 Finance</committee-name></action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title>To reform graduate medical education payments, and for
		  other purposes.</official-title>
	</form>
	<legis-body>
		<section id="S1" section-type="section-one"><enum>1.</enum><header>Short
			 title</header><text display-inline="no-display-inline">This Act may be cited as
			 the <quote><short-title>Graduate Medical Education Reform
			 Act of 2012</short-title></quote>.</text>
		</section><section id="id80A0D66A12C6429387BD002012DF8A7D"><enum>2.</enum><header>Medicare
			 indirect medical education performance adjustment</header><text display-inline="no-display-inline">Section 1886 of the Social Security Act (42
			 U.S.C. 1395ww) is amended by adding at the end the following new
			 subsection:</text>
			<quoted-block display-inline="no-display-inline" id="id17FE9471D46A4425B8FB0B3846FB0A5B" style="OLC">
				<subsection id="idB298C83D6BBD4E2589DA7816CBA7BD06"><enum>(t)</enum><header>Indirect
				medical education performance adjustments</header>
					<paragraph id="idAE21337FE372449BB3019C9632A0C21F"><enum>(1)</enum><header>In
				general</header><text>Subject to the succeeding provisions of this subsection,
				the Secretary shall establish and implement procedures under which the amount
				of payments that a hospital (as defined in paragraph (11)(A)) would otherwise
				receive for indirect medical education costs under subsection (d)(5)(B) for
				discharges occurring during a fiscal year is adjusted based on the reporting of
				measures and the performance of the hospital on measures of patient care
				priorities specified by the Secretary.</text>
					</paragraph><paragraph id="id594A1DD066CC47B1BEDA3E82C31C0988"><enum>(2)</enum><header>Adjustments to
				begin in fiscal year 2017</header><text>The adjustments shall apply to payments
				for discharges occurring—</text>
						<subparagraph id="id53810CEDFF31452BBD2D7ADE701758CE"><enum>(A)</enum><text>with respect to
				the adjustments for reporting under paragraph (8)(A), during fiscal year 2017;
				and</text>
						</subparagraph><subparagraph id="id6B9068B23B934742B2E73C6B534DE1B4"><enum>(B)</enum><text>with respect to
				the adjustments for performance under paragraph (8)(B), on or after October 1,
				2017.</text>
						</subparagraph></paragraph><paragraph id="id0CC5BFFEC9A2474697688AC2C0490BCE"><enum>(3)</enum><header>Measures</header><text>The
				measures of patient care priorities specified by the Secretary under this
				subsection shall include the extent of training provided in—</text>
						<subparagraph id="ID3aaa084b8bad472aa037238fd5411a13"><enum>(A)</enum><text>the delivery of
				services categorized as evaluation and management codes by the Centers for
				Medicare &amp; Medicaid Services;</text>
						</subparagraph><subparagraph id="ID905ac03667d6403e95b4ad93269f5336"><enum>(B)</enum><text>a variety of
				settings and systems;</text>
						</subparagraph><subparagraph id="ID64ec8f6f621041d5a5b0db4e84f6f732"><enum>(C)</enum><text>the coordination
				of patient care across settings;</text>
						</subparagraph><subparagraph id="ID3f9eeb3e9d7645a99f434b8be295baa5"><enum>(D)</enum><text>the relevant cost
				and value of various diagnostic and treatment options;</text>
						</subparagraph><subparagraph id="ID3e8fdbe2c35b4d50a98d9771d7fff558"><enum>(E)</enum><text>interprofessional
				and multidisciplinary care teams;</text>
						</subparagraph><subparagraph id="IDc4462f2aeea44fce9d58701b95992bea"><enum>(F)</enum><text>methods for
				identifying system errors and implementing system solutions; and</text>
						</subparagraph><subparagraph id="ID4009bde18aa441319f0f1e6e527bacd7"><enum>(G)</enum><text>the use of health
				information technology.</text>
						</subparagraph></paragraph><paragraph id="id4056060192B34C16BC105873889D55A7"><enum>(4)</enum><header>Measure
				development process</header>
						<subparagraph id="ID14b056f6b5e94c0982dc70815fc3b8f7"><enum>(A)</enum><header>In
				general</header><text>The measures of patient care specified by the Secretary
				under this subsection—</text>
							<clause id="id7D8FFCB68FFA43F7AF59A8519424DA84"><enum>(i)</enum><text>shall—</text>
								<subclause id="idA7ED9CB2A2A745C993377E22820ED0C0"><enum>(I)</enum><text>be measures that
				have been adopted or endorsed by an accrediting organization (such as the
				Accreditation Council for Graduate Medical Education or the Commission on
				Osteopathic College Accreditation); and</text>
								</subclause><subclause id="id0C15B047A30D403399C8BC851BF65920"><enum>(II)</enum><text>be measures that
				the Secretary identifies as having used a consensus-based process for
				developing such measures; and</text>
								</subclause></clause><clause id="id1F0185F12C3443D8B410180794A09961"><enum>(ii)</enum><text>may include
				measures that have been submitted by teaching hospitals, medical schools, and
				other stakeholders.</text>
							</clause></subparagraph><subparagraph id="IDf256b62042104a8e8b3e574d85022794"><enum>(B)</enum><header>Proposed set of
				initial measures</header><text>Not later than July 1, 2014, the Secretary shall
				publish in the Federal Register a proposed initial set of measures for use
				under this subsection. The Secretary shall provide for a period of public
				comment on such measures.</text>
						</subparagraph><subparagraph id="ID98b0977430d047f1954d7e5412b87a38"><enum>(C)</enum><header>Final set of
				initial measures</header><text>Not later than January 1, 2015, the Secretary
				shall publish in the Federal Register the set of initial measures to be
				specified by the Secretary for use under this subsection.</text>
						</subparagraph><subparagraph id="id4215EA0A304449529FE659140B7D33C2"><enum>(D)</enum><header>Update of
				measures</header><text>The Secretary may, through notice and comment
				rulemaking, periodically update the measures specified under this subsection
				pursuant to the requirements under subparagraph (A).</text>
						</subparagraph></paragraph><paragraph id="idB379FF3A16A34BD1997E9D03984A43B8"><enum>(5)</enum><header>Performance
				standards</header><text>The Secretary shall establish performance standards
				with respect to measures specified by the Secretary under this subsection for a
				performance period for a fiscal year (as established under paragraph
				(6)).</text>
					</paragraph><paragraph id="id68ED3ADD71AB43BAA56BA970C423073A"><enum>(6)</enum><header>Performance
				period</header><text>The Secretary shall establish the performance period for a
				fiscal year. Such performance period shall begin and end prior to the beginning
				of such fiscal year.</text>
					</paragraph><paragraph id="idEB198C878D7642FB91099E2A6A94C9EC"><enum>(7)</enum><header>Reporting of
				measures</header><text>The procedures established and implemented under
				paragraph (1) shall include a process under which hospitals shall submit data
				on the measures specified by the Secretary under this subsection to the
				Secretary in a form and manner, and at a time, specified by the Secretary for
				purposes of this subsection.</text>
					</paragraph><paragraph id="ID2e3b98b0e3a04009925c325e8c67669f"><enum>(8)</enum><header>Adjustments</header>
						<subparagraph id="idB07916560FB54223B35EBCDAF0D45434"><enum>(A)</enum><header>Reporting for
				fiscal year 2017</header><text>For fiscal year 2017, in the case of a hospital
				that does not submit, to the Secretary in accordance with this subsection, data
				required to be submitted under paragraph (7) for a period (determined
				appropriate by the Secretary) for such fiscal year, the total amount that the
				hospital would otherwise receive under subsection (d)(5)(B) for discharges in
				such fiscal year shall be reduced by 0.5 percent.</text>
						</subparagraph><subparagraph id="idA8320CA67FD24B54ADE81A2A1ED84A74"><enum>(B)</enum><header>Performance for
				fiscal year 2018 and subsequent fiscal years</header>
							<clause id="idCF12386BC1C14C51A8CF07C134D8085F"><enum>(i)</enum><header>In
				general</header><text>Subject to clause (ii), based on the performance of each
				hospital with respect to compliance with the measures for a performance period
				for a fiscal year (beginning with fiscal year 2018), the Secretary shall
				determine the amount of any adjustment under this subparagraph to payments to
				the hospital under subsection (d)(5)(B) for discharges in such fiscal year.
				Such adjustment may not exceed an amount equal to 3 percent of the total amount
				that the hospital would otherwise receive under such subsection for discharges
				in such fiscal year.</text>
							</clause><clause id="ID019dabc9897e4a6ab56e6217c7b5d690"><enum>(ii)</enum><header>Budget
				neutral</header><text>In making adjustments under this subparagraph, the
				Secretary shall ensure that the total amount of payments made to all hospitals
				under subsection (d)(5)(B) for discharges in a fiscal year is equal to the
				total amount of payments that would have been made to such hospitals under such
				subsection for discharges in such fiscal year if this subsection had not been
				enacted.</text>
							</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6DFC664F1EB7435C8452674DB1C9EFD5"><enum>(9)</enum><header display-inline="yes-display-inline">No effect in subsequent fiscal
				years</header><text display-inline="yes-display-inline">Any adjustment under
				subparagraph (A) or (B) of paragraph (8) shall apply only with respect to the
				fiscal year involved, and the Secretary shall not take into account any such
				adjustment in making payments to a hospital under this section in a subsequent
				fiscal year.</text>
					</paragraph><paragraph id="id62CCE6BCF6A9418CA2C711B409D1B6B1"><enum>(10)</enum><header>Evaluation of
				submission of performance measures</header><text>Not later January 1, 2017, the
				Secretary shall submit to Congress a report on the implementation of this
				subsection, including—</text>
						<subparagraph id="id04E2F3CAEA5942B28EFFE337224D2E97"><enum>(A)</enum><text>the measure
				development procedures, including any barriers to measure development;</text>
						</subparagraph><subparagraph id="idAE6E3C7467714F58A769EDC1CFB57E57"><enum>(B)</enum><text>the compliance
				with reporting on the performance measures, including any barriers to such
				compliance; and</text>
						</subparagraph><subparagraph id="id963FCD9C28B141A9AF26D8EAA62C2E81"><enum>(C)</enum><text>recommendations
				to address any barriers described in subparagraph (A) or (B).</text>
						</subparagraph></paragraph><paragraph id="id937A9356C28A4CFC85E84A04B7B40038"><enum>(11)</enum><header>Definition of
				hospital</header><text>In this subsection, the term <quote>hospital</quote>
				means a hospital the receives payments under subsection
				(d)(5)(B).</text>
					</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
		</section><section id="id0D5AFA9257614D3A9E09CCD8D04F37BF"><enum>3.</enum><header>Increasing
			 graduate medical education transparency</header>
			<subsection id="id4A3BF5411A1E41BFADF859DB23813F16"><enum>(a)</enum><header>In
			 general</header><text>Not later than 2 years after the date of the enactment of
			 this Act, and annually thereafter, the Secretary of Health and Human Services
			 shall submit to Congress and the National Health Care Workforce Commission a
			 report on the graduate medical education payments that hospitals receive under
			 the Medicare program. The report shall include the following information with
			 respect to each hospital that receives such payments:</text>
				<paragraph id="ID474090452a624dedbc2ee6b7fe86e55f"><enum>(1)</enum><text>The direct
			 graduate medical education payments made to the hospital under section 1886(h)
			 of the Social Security Act (42 U.S.C. 1395ww(h)).</text>
				</paragraph><paragraph id="id4f3c74730fe34130a15bbbaba5d6b57a"><enum>(2)</enum><text>The total costs
			 of direct graduate medical education to the hospital as reported on the annual
			 Medicare Cost Reports.</text>
				</paragraph><paragraph id="ID469d611c9b354cf3ae909a89f36409ba"><enum>(3)</enum><text>The indirect
			 medical education payments made to the hospital under section 1886(d)(5)(B) of
			 such Act (42 U.S.C. 1395ww(d)(1)(B)).</text>
				</paragraph><paragraph id="ID3f8744c67f354794886f29b57a24e8cd"><enum>(4)</enum><text>The number of
			 full-time-equivalent residents counted for purposes of making the payments
			 described in paragraph (1).</text>
				</paragraph><paragraph id="ID1e609ba710d1456f99dc9c02013bb2be"><enum>(5)</enum><text>The number of
			 full-time-equivalent residents counted for purposes of making the payments
			 described in paragraph (3).</text>
				</paragraph><paragraph id="idB0AF64117C524F0B837855A96B993E3C"><enum>(6)</enum><text>The number of
			 full-time-equivalent residents, if any, that are not counted for purposes of
			 making payments described in paragraph (1).</text>
				</paragraph><paragraph id="idCFD5C19046EE47B0A1B8701008FB1D26"><enum>(7)</enum><text>The number of
			 full-time-equivalent residents, if any, that are not counted for purposes of
			 making payments described in paragraph (3).</text>
				</paragraph><paragraph id="id219a2bc8862f4e26b298f0fd1ea30040"><enum>(8)</enum><text>The factors
			 contributing to the higher costs of patient care provided by the hospital,
			 including—</text>
					<subparagraph id="id193c4bb03e1c46e883f2d1690027a535"><enum>(A)</enum><text>the costs of
			 trauma, burn, other standby services;</text>
					</subparagraph><subparagraph id="id413a9c7929664b229164829ed145fe0b"><enum>(B)</enum><text>translation
			 services for disabled or non-english speaking patients;</text>
					</subparagraph><subparagraph id="id0412c388a61d49d3bab3a044bafec72f"><enum>(C)</enum><text>the cost of
			 uncompensated care;</text>
					</subparagraph><subparagraph id="idafc724036adf4fd293ccd7b97e827205"><enum>(D)</enum><text>financial losses
			 with respect to Medicaid patients; and</text>
					</subparagraph><subparagraph id="id63af669d72b246f5872956abea437ccf"><enum>(E)</enum><text>uncompensated
			 costs of clinical research.</text>
					</subparagraph></paragraph></subsection></section></legis-body>
</bill>
