Graduate Medical Education for teaching hospitals in Fiscal Years 2000-2007

In the United States, teaching hospitals and associated ambulatory settings provide the graduate medical education (GME) for resident physicians ("residents") through several years of supervised, hands-on clinical training programs in particular areas of medicine.

These teaching hospitals provide 3 services simultaneously: (1) patient health care; (2) graduate medical training; and commonly (3) medical research services. In the training of residents, teaching hospitals incur significant costs and expenses beyond those customarily associated with providing patient care or performing medical research. The Medicare program makes payments to teaching hospitals for a portion of these added costs through its graduate medical education payments.