January 15, 1999

AAMC President Meets with DHHS Secretary Shalala

AAMC President Jordan Cohen, M.D. and Executive Vice President Dick Knapp, Ph.D., met Jan. 7 with Health and Human Services Secretary Donna Shalala and colleagues. Dr. Cohen expressed concern about the apparent growing support among members of the National Bipartisan Commission on the Future of Medicare to move Direct Graduate Medical Education (DGME) and Disproportionate Share Hospital (DSH) payments from the Medicare Part A Trust Fund to a discretionary funding source.

He also outlined AAMC opposition to any new Medicare cuts and stated AAMC support for an increase in the NIH FY 2000 budget, substantially above the "rumored" 2.1 percent being reported as the Administration proposal in the trade press.

Dr. Cohen reports an excellent exchange of views with the Secretary who indicated the Administration would not take a separate view of the DGME and DSH payments, but would review the entire package being prepared by the Commission. She did say, "at the end of the day, this Administration is very supportive of graduate medical education."

The Secretary asked for AAMC support and collaboration to develop academic health center relationships with community health centers to provide health care to low income workers and also on efforts to reduce health disparities among various population groups.

At the close of the meeting the Secretary said, "There are some exciting things happening, and there are some things we have to ‘watch together carefully', and I hope you will ask your member teaching hospitals and medical schools to put the Y2K compliance issue higher on their priority list."

Information: Dick Knapp, AAMC Executive Vice President, 202-828-0410.