Children’s Hospitals Graduate Medical Education Payment Program

Our CHGME program provides federal funds to the nation’s freestanding, children's hospitals to help them maintain their graduate medical education (GME) programs that train resident physicians and dentists. Learn more about this year’s CHGME funding opportunity.

What is our impact?

In FY 2019 HRSA distributed approximately $305 million in funding to 58 hospitals nationwide, enhancing their ability to care for low-income children across the country. 

The program supports the training of (43%) of all general pediatrics residents and over half (55%) of all pediatric subspecialty residents and fellows annually in the U.S. 

The program is an integral investment in the pediatric health workforce. CHGME helped train almost half of the nation's general pediatrics residents.

How does the CHGME program work?

Each summer, eligible hospitals complete and submit an initial application. Using data from those applications, the program calculates the payments that each hospital will receive for direct medical education (DME) and indirect medical education (IME).

  • DME funding covers costs associated with stipends for residents, salaries, salaries for faculty, overhead and other costs of running a training program.
  • IME funding assists in expenditures such as reduced productivity of staff training residents and the processing of additional diagnostic tests those residents may order.

From October through March, fiscal intermediaries conduct audits of reported resident counts.

In the spring, each hospital submits a reconciliation application used to determine the final DME and IME payments.

How long does resident training last?

Depending on the medical, dental or pediatric specialty track that a resident chooses, training may take between three and seven years to complete.

What does the program provide to participating hospitals?

The CHGME program enables hospitals to:

  • Provide education to graduates of medical schools
  • Enhance research capabilities
  • Care for vulnerable and underserved children

Who can apply?

A hospital is eligible to apply for CHGME Payment Program funding if it:

  • participates in an approved Graduate Medical Education (GME) program;
  • has a Medicare Provider Agreement;
  • is excluded from the Medicare Inpatient Prospective Payment System (IPPS); and
  • operates as a freestanding* children’s teaching hospital.

*A freestanding children’s teaching hospital does not operate under a Medicare hospital provider number assigned to a larger health care entity that receives Medicare GME payments.

A hospital remains eligible for payments as long as it trains residents as a freestanding children’s hospital during the federal fiscal year that HRSA makes CHGME program payments.

Why is our work important?

The CHGME program plays a significant role in educating and preparing the U.S. pediatric health workforce to serve the needs of children across the country and innovate in the area of pediatrics.

Date Last Reviewed:  August 2019