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DOCUMENT RESUME
05995 - [B1386420]
Federal Capitation Support and Its Pole in the Operation of
Medical Schools. KIRD-78-105: B-164031(2). May 16, 1978. 27 pp. +
11 appendices (47 pp.).
Staff study by Gregory J. Ahbrt, Director, Human Resources Div.
Issue Area: Health Programs: Health Providers (1202).
Contact: Human Resources Div.
Budget Function: Health: Health Care Services (551).
Organization Concerned: Department of Health, Education, and
Welfare.
Congressional Relevance: House Committee on Interstate and
Foreign mmerce: Health and the Environment Subccmmittee.
Authority: Comprehensive Health Manpower Training Act of 1971
(P.L. 92-157). Health ProfessioLs Education Assistance Act.
The Comprehensive Health Manpower Act of 1971
authorized institutional assistance in the fcrm cf formula
grants, called capitation grants, based on statutorily
established amcunts per student per year and a bcnus for
enrollment of first-year students beyond mandated levels.
Subject to the availability of appropriations, medical schools
were authorized to receive $2,500 for each emrclled first-year,
second-year, and third-year student, and $4,000 for each
graduating student. Findings/Conclusions: Although it provides
a relatively small percentage of the resourcek- needed to operate
a medical school, Federal capitation support has played an
important role in hedical education. Because of the flexibility
in expenditures allowable from this source of revenue, school
officials believe that terminating the prcgram would adversely
affect medical school teaching programs and possibly result in
reduced enrollment. However, data do not shcw conclusively the
impact that loss of capitation grants would have on medical
schools. Federal funding to medi.al schools has increased bit
not at the same rate as other funding sources. Federal suppcrt
of medical schools amounted to about 50% of their total revenue
in ?975-76, a decline of 3% since school year 1973-74. The major
portion of Fede.al support comes from National Institutes of
Health research grants. If this source of funding had not
increased, the Federal share of medical schccl revenue would
have been about 44% in 1975-76. Medical school revenues are
increasing. From 1974 to 1976. public-supported medical schools
increased their revenues ny 34% while privat4e medical schools
increased their revenues by 22%. However, medic;l school
expenditures have also increased. (BPS)](ViewImageLocal?handle=hein.gao/gaobacjgt0001&div=1&collection=&method=preview&ext=.png&size=3)