The AMA believes that: (1) Graduate medical education is an essential component of the education of all physicians. The health and well-being of the American people are directly benefited by the graduate medical education of physicians. Societal contributions to the financing of graduate medical education are appropriate. (2) The education of physicians in graduate medical education and the clinical care of patients are inextricably linked. Teaching hospitals should be fully reimbursed for the reasonable costs of residents' salaries and fringe benefits. (3) All payors of patient care costs should support graduate medical education in the institutions in which care for their beneficiaries is delivered. Support for both direct and indirect costs must include residents assigned to ambulatory care sites that are essential components of educational programs (Reaffirmed by Sub. Res. 706, I-94). (4) Funding from multiple sources should be available to support residency training programs. (5) Resident physicians should not be permitted to bill directly for patient care services. (6) In a period of fiscal constraint, first priority for Medicare funds for residents' salaries and fringe benefits should be accorded to graduates of medical schools accredited by the Liaison Committee on Medical Education or the American Osteopathic Association. Cessation of support for foreign medical graduates should be phased in over an appropriate time period. (7) Residents should be compensated reasonably in all programs throughout the nation. Uncompensated and under-compensated positions should be discouraged. (8) Reimbursement for patient care by all payors must be adequate to sustain the nation's teaching hospitals. Adequate indirect cost payments under Medicare should be continued. Government must consider and fund separately the care of the nation's indigent. (BOT Rep. D, I-85; Modified by CLRPD Rep. 2, I-95)