March 12, 1999

Medical Schools Criticize Proposal to Shift Payments for Graduate Education

By PAULETTE WALKER CAMPBELL

Medical-school officials are upset over a plan emerging in Congress that could jeopardize $2-billion in federal funds for teaching hospitals each year.

The plan would shift a subsidy that pays hospitals for the direct costs associated with graduate medical education, moving the subsidy from Medicare, where it is an entitlement that is assured of funds, to the regular appropriations process, where it could be more easily trimmed or

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