I am trying to figure out how much money the sponsoring institution (University of South Alabama Hospitals and Clinics) receives from the federal government for training our residents. Of course, I am interested because I want to make sure that the taxpayers are getting their money’s worth (in deference to our congressional delegation). I still haven’t found the absolute number but I have found the formula the government uses that I feel certain will eventually help me

Basic methodology underlying DGME payments:
• Step 1: Determine hospital-specific per resident base year cost amount (PRA) (generally 1984)
• Step 2: Update (to current year) base-year per resident amount (PRA) for inflation
• Step 3: Multiply the updated PRA by the number of residents in the current year (this amount capped by BBA resident limits)
• Step 4: Multiply by the hospital’s ratio of Medicare inpatient days/total days
The PRA is a critical variable. It is assigned to the teaching hospital and is based upon:
• The rate established if the institution was a teaching hospital in 1984; or
• The lesser of the audited actual allowable costs or the average PRA of a group of comparison hospitals.

More gurgling toad sculptures, less formulas please…

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