H.R. 297, the Children’s Hospital GME Support Reauthorization Act of 2013: Revised

Cost Estimate
February 1, 2013

Revised February 4, 2013, to correct an error in the previous estimate

As ordered reported by the House Committee on Energy and Commerce on January 22, 2013

H.R. 297 would amend the Public Health Service Act to authorize payments to children’s hospitals for operating training programs that provide graduate medical education. Payments would be made to such hospitals for both direct and indirect costs related to graduate medical education. Direct costs are those related to operating a medical education program, such as the salaries of medical students, while indirect costs are those intended to compensate hospitals for patient care costs that are expected to be higher in teaching hospitals than in non-teaching hospitals.

H.R. 297 would authorize the appropriation of $330 million a year for each of fiscal years 2013 through 2017 for payments to children’s hospitals. CBO estimates that implementing the bill would cost $45 million in 2013 and about $1.4 billion over the 2013-2018 period, assuming the appropriation of the authorized amounts. Pay-as-you-go procedures do not apply to this legislation because it would not affect direct spending or revenues.

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.