Expanding hospital and FQHC partnerships for graduate medical education

(a) Payments to teaching health centers (1) In general Section 340H of the Public Health Service Act (42 U.S.C. 256h) is amended— (A) in subsection (a)(1), in the matter preceding subparagraph (A), by inserting, or that have in effect a covered agreement with a sponsoring institution so listed, after relevant accrediting body; and (B) in subsection (j), by adding at the end the following new paragraph: (5) Covered agreement The term covered agreement means a written contract, memorandum of understanding, or other written agreement entered into for a period of not less than 2 years for the purpose of conducting an approved graduate medical residency training program.. (2) Effective date The amendments made by paragraph (1) shall apply with respect to expenses incurred on or after October 1, 2027. (b) Medicare GME cap Section 1886(h) of the Social Security Act (42 U.S.C. 1395ww(h)) is amended— (1) in paragraph (4)(F)(i), by striking and (10) and inserting (10), and (11); and (2) by adding at the end the following new paragraph: (11) Training programs at Federally qualified health centers (A) In general For cost reporting periods beginning on or after October 1, 2027, in the case of a hospital that has an approved medical residency training program where a significant portion of such program occurs at a Federally qualified health center (as determined by the Secretary), the Secretary shall increase the otherwise applicable resident limit for such hospital by 3 full-time equivalent residency positions. (B) Definitions In this paragraph: (i) Otherwise applicable resident limit The term otherwise applicable resident limit means, with respect to a hospital, the limit otherwise applicable under subparagraphs (F)(i) and (H) of paragraph (4) on the resident level for the hospital determined without regard to this paragraph but taking into account subparagraphs (A) and (B) of paragraph (7), subparagraphs (A) and (B) of paragraph (8), and paragraphs (9)(A) and (10)(A). (ii) Resident level The term resident level has the meaning given such term in paragraph (7)(C)(i)..