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David D. Marcus, PhD

JAMA. 1985;254(3):408.

	Since this article does not have an abstract, we have provided the first 150 words of the full text PDF and any section headings.

The teaching hospitals, so the conventional wisdom goes, face a bleak future.^1,2 In an increasingly price-conscious health care sector, teaching hospitals, with their higher cost per admission, are at a relative disadvantage in competing for insured patients.³ Third-party payers are less willing than in the past to contribute toward the activities these institutions consider to be their special mission: residency programs, treatment of Medicaid recipients and of the medically indigent, and the care of more severely ill patients. The budget resolution passed by the Senate caps at the 1984 level Medicare expenditures for the direct costs of postgraduate training and reduces by 50% Medicare payments for the indirect costs attributed to medical education. In the private sector, the newly emerging trend toward selective contracting may also increase the economic difficulties that teaching hospitals are anticipating. And in the slightly more distant future, the rapid growth of the proprietary . . . [Full Text PDF of this Article]

Author Affiliations
American Medical Association Chicago

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