TAGME Financial Management 4

Question 1

A teaching hospital's GME cap is set at 250 FTE residents. It currently trains 310 residents. Medicare pays for how many FTEs at the direct GME rate?

Accepted Answer

250 FTEs only; the remaining 60 receive no Medicare GME funding

Answer

CMS pays direct GME at the full per-resident amount only up to the hospital's FTE cap; residents above the cap generate no additional Medicare GME payment.

Question 2

Which of the following is a direct cost typically included in calculating the per-resident amount (PRA) for Medicare GME funding?

Accepted Answer

Resident salaries, benefits, and program administrative costs

Answer

The PRA is based on direct costs attributable to training residents, including salaries, benefits, and program administration, not faculty malpractice or hospital overhead.

Question 3

A GME administrator is asked to perform a 'gap analysis' for the upcoming budget cycle. What does this process involve?

Accepted Answer

Identifying the difference between projected funding and projected program expenses

Answer

A budget gap analysis identifies the shortfall or surplus between anticipated revenue sources and expected expenditures for the planning period.

Question 4

A program is considering adding two new fellowship positions. The incremental cost per fellow is $95,000/year. If the hospital's Medicare GME cap has room for two additional FTEs and the PRA is $60,000, what is the net annual cost to the program per fellow?

Accepted Answer

$35,000

Answer

Net cost per fellow = $95,000 total cost − $60,000 Medicare PRA reimbursement = $35,000 annual net cost to the program.

Question 5

Under IRS rules, resident stipends are subject to which of the following?

Accepted Answer

Federal income tax withholding as employee compensation

Answer

Resident stipends are treated as wages and are subject to federal income tax withholding; they are generally also subject to FICA unless a student FICA exception applies.

TAGME - Training Administrators of Graduate Medical Education Practice Test

TAGME - Training Administrators of Graduate Medical Education Practice Test

TAGME Financial Management 4