AB 618

Under current law, the Department of Health Services must distribute grants

to rural hospitals to establish graduate medical training (GMT) programs in a

specialty and to hospitals with existing GMT programs in a specialty to support the

addition of new positions in the programs. Current law includes a nonexhaustive list

of specialties in which a hospital's GMT program may specialize in order to be eligible

for a grant. This bill removes that list but retains the specialty requirement for grant

eligibility.

Under current law, the maximum amount of a grant DHS may distribute in a

fiscal year to a hospital with an existing GMT program to support the addition of new

positions in the program is $225,000. The bill removes that $225,000 maximum. The

bill also requires DHS to renew grant funding to hospitals with existing GMT

programs that received a grant in the previous fiscal year, without requiring the

hospital to reapply for the grant, provided the hospital still meets eligibility criteria

established by DHS, maintains an accredited GMT program, and wishes to receive

grant funding.

In addition, the bill creates a new grant program under which DHS is required

to distribute up to $375,000 in annual grants, plus any matching federal Medical

Assistance funds, to support GMT consortia. Under the bill, a GMT consortium is

defined as an independent, nonprofit organization formed by two or more entities to

oversee, support, and administer accredited GMT programs at rural hospitals. The

bill requires DHS to distribute grants to GMT consortia that apply for the grant and

meet certain requirements. DHS must also renew grant funding to GMT consortia

that received the grant in the previous fiscal year, without requiring the consortium

to reapply for the grant, provided the consortium still meets the grant requirements

and wishes to receive grant funding. DHS must give preference in awarding the

grants to GMT consortia that oversee, support, and administer GMT programs at

rural hospitals that have limited access to federal GMT funding from the federal

Centers for Medicare and Medicaid Services. Under the bill, a GMT consortium must

be accredited within 12 months of receiving a grant, and a GMT consortium may not

receive renewed grant funding if the consortium is not accredited.