Study Finds Cutting Indirect Medical Education Payments as Part of Budget Deficit Would Cost 73K Jobs

A study prepared by Tripp Umbach, an economic consulting firm, for the Association of American Medical Colleges, found that cutting Medicare Indirect Medical Education payments to teaching hospitals by 60 percent — as proposed by President Obama's National Commission on Fiscal Responsibility and Reform — could lead the loss of 72,600 jobs and cost the economy $10.9 billion, according to an AHA News Now report.

Specifically, the study concluded that for every $1 in payment reduction, the economy of the state where the hospital is located would lose $3.84.

Politicians working toward a debt reduction package are considering recommendations of the Commission, but the AAMC says a cut to Medicare Indirect Medical Education payments would negatively impact "communities in all regions of the country [that] typically rely on teaching hospitals for job creation, advanced research, new business development, and education of medical professionals in addition to clinical care."

Read the full study on Medicare Indirect Medical Education payment cuts.

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