Advancing Medical Resident Training in Community Hospitals Act of 2016

This bill amends title XVIII (Medicare) of the Social Security Act to revise payment rules for graduate medical education (GME) costs with respect to a hospital that establishes a new medical residency training program.

With respect to a hospital that has not entered into a GME affiliation agreement, the Centers for Medicare & Medicaid Services (CMS) shall establish the hospital's full-time equivalent (FTE) resident amount only after determining that the hospital's medical residency training program trains more than 1.0 FTE resident in a cost reporting period. In the case of a hospital with an approved FTE resident amount based on the training of no more than 1.0 FTE resident in a cost reporting period before October 1, 1997, or 3.0 FTE residents in a cost reporting period after that date, CMS shall provide the hospital an opportunity to have its FTE resident amount reestablished when the hospital begins training FTE residents in excess of the applicable threshold.

Current law limits the number, subject to the application of certain adjustments, of FTE residents a hospital may have in allopathic and osteopathic medicine for purposes of Medicare payment. The bill specifies that CMS shall determine a hospital's limitation adjustment only after determining that the hospital's medical residency training program trains more than 1.0 FTE residents in a cost reporting period. In the case of a hospital with a limitation adjustment based on the training of no more than 1.0 FTE resident in a cost reporting period before October 1, 1997, or 3.0 FTE residents in a cost reporting period after that date, CMS shall provide the hospital an opportunity to have its adjustment re-determined when the hospital begins training FTE residents in excess of the applicable threshold.