"Sustainable Financing for Community-based and Ambulatory Education:

What Changes do We Need in Organizational and Public Policy?"

Claude Earl Fox III, MD, MPH Administrator,

Health Resources and Services Administration

Discussants:

James R. Boex, MBA

Health of the Public Network

Howard K. Rabinowitz, MD

Generalist Physician Initiative

W. Donald Weston, MD

Community Partnerships for Health Profession Education Initiative

Good morning. Thank you for inviting me to open the meeting. I noticed that my invitation letter asked me to

discuss: "Are changes needed in organizational and public policy?" I toyed with the idea of just taking the

podium and saying: "Yes", and watching the discussants try to react to that. But I noticed that by the time the

program went to press, the question had changed to, "What changes are needed in organizational and public

policy?" So I guess change is no longer optional.

Curiously, that's exactly what I intend to say-and I don't expect to encounter any disagreement.

Health care is changing. Government is changing. Primary care education can either change along with them

or get trampled in the stampede of other programs rushing to change their approach.

But you already know that. The more pertinent question-and the more difficult answer-is how exactly do

organizational and public policy need to change? Rather unfortunately, I do not have that answer. If you do,

please see me at the close of this session. But I do have some ideas that could be part of that answer that I'd

like to share-and then we'll see what you and our discussants think.

Outcome

Before we can talk about needed change, we need to establish the outcome we want to achieve.

In the case of primary care education, from where I sit-at the helm of the federal agency that assures access

to care for underserved Americans-I see three clear and urgent needs.

* One, we need the right people-that is, individuals who are as racially and ethnically diverse as the

US population.

* Two, we need them to have the right skills-we have to train all kinds and levels of primary

care providers to work together, to work comfortably in the managed care environment, and to be

sensitive to the diversity of cultures that patients represent.

* Three, we need them working in the right places-because right now more than 43 million

Americans live in underserved areas. And in a nation that boasts the finest health care in the

world, that's just plain wrong.

To achieve those, we need clear, rational, and consistent organizational and public policies that continue to

move health professions training in the direction that these six national initiatives have pioneered.

Organizational Changes

At HRSA, we have three decades of experience in effecting organizational change in primary care education.

We know that even small adjustments in the policies of training institutions can have a big impact on the

students they attract, the skills they impart, and the practice patterns of their graduates.

Minority Recruitment

Training institutions can, for example, significantly increase their numbers of African-American, Hispanic,

American Indian, and Alaska Native students by reaching out to promising minority students while they're

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still in high school or even middle school. And I think Don will reinforce that point-and show you what else

educators, States, and the private sector can do to increase the diversity of health professionals. Identifying

students while they're still years away from health professions training gives ample time to reinforce their

academic skills in science and expose them to the vast career options available to them within the primary

care disciplines. That's critical in a nation where under-represented minorities already comprise 24% of the

population-and are the fastest-growing demographic group-but only account for about 10% of current

primary care graduates. African-American, Hispanic, American Indian, and Alaska Native providers are far

more likely to treat both patients who share their minority heritage and patients who are low-income, unin-

sured, or insured by Medicaid. So the first change the primary care professions training enterprise can-and

should-make is to recruitment policies. They should look much more deeply and broadly at the pool of

potential applicants and make certain that their policies encourage under-represented minorities to apply for

and enter training.

Community-based Ambulatory Training

That will give us more of the right people. Now we need to make sure they have the right skills-that the

students who start out in primary care stay there-and that they can practice effectively in managed care

delivery systems as members of provider teams.

It should go without saying-and in this group, it probably could-we can't expect to produce adequate

numbers of generalists with a training system heavily weighted to favor specialty training. Yet that seems to be

what some individuals and institutions expect. We simply must make sure that our training institutions are

prepared to shift the emphasis of training into community-based ambulatory settings. HRSA supports a major

faculty development initiative with each of the three primary care disciplines to help educators and their

institutions make that transition.

Our programs are working with internal medicine, family practice, and general pediatrics to train faculty

leaders, junior faculty, and community-based providers to train primary care professionals in community-

based settings. Our entire Area Health Education Center program revolves around training students in commu-

nity-based ambulatory settings. And through these programs, we are achieving needed outcomes. Graduates of

HRSA programs are significantly more likely to stay in primary care and four times more likely than other

graduates to practice in medically underserved communities.

Interdisciplinary Training

Any educational institution has a natural interest in the job market its graduates face. New primary care

professionals can, for the most part, count on a friendly-even hungry-market for their skills-an enviable

situation that is no longer true for either specialist physicians or nurses educated at less than the baccalaureate

degree level.

Yet we continue to produce inadequate numbers of primary care physicians, advanced practice nurses, and

physician assistants, particularly those who enter practice in medically underserved communities. Even with

50% of medical school graduates entering primary care residencies, only about 35% stay on the primary care

track. Less than a third of those destined for primary care end up practicing in medically underserved commu-

nities.

Why, with such strong market demand and severe public need? Why, with managed care expanding the scope

of primary care practice? Why, when technology is opening opportunities-and easing some of the burdens-

for primary care? Why are we unable to recruit and retain sufficient numbers for primary care and

underserved practice? It must be, at least partly, something about the way we teach and train.

All of HRSA's health professions training programs are geared to increasing the number of primary care

providers who are well prepared for practice with vulnerable populations. HRSA's total investment in health

professions training this fiscal year is close to $300 million. Our programs have been quite successful at

attracting promising students to enter primary care fields-and have validated the notion that where and how

you train students strongly influences where and how they will build their careers.

 

 

 

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One of the more compelling models is the interdisciplinary generalist curriculum project, one of the six

initiatives sponsoring this conference. Carried out in 10 demonstration sites, the Interdisciplinary Generalist

Curriculum Project focused on first- and second-year medical students and featured direct supervised clinical

experience with generalist physician preceptors or mentors, preclinical curricula, and interdisciplinary teach-

ing and training by primary care physicians and their primary care colleagues. It supported the best learning

for the practice of primary care. Although the full evaluation is ongoing, we have seen strong evidence that

exposing students to interdisciplinary primary care education and practice early on can have a long-lasting

impact on their career choices.

We are expanding on the concept of instilling the right skills early on through our Undergraduate Medical

Education for the 21st Century Project. A total of 18 medical schools, in partnership with managed care

organizations or other integrated health care delivery systems, are full (8) or associate partners (10). They are

developing third- and fourth-year curricula and clinical experiences that include health systems-based care,

finance, economics, organization, delivery, ethics, population-based practice, and quality measurement and

improvement. Associate partners are focused on smaller projects.

Distance Learning

At the same time that we reach out to bring minority students into primary care and reach down and

strengthen primary care teaching in our health professions curricula, we also need to look at the training

infrastructure. Classroom education and hospital-based clinical training dominate today, but that, too is

changing-and changing in ways that further increase our ability to develop the primary care workforce we

need. We're seeing growing demand for primary care practitioners who can practice beyond the traditional

scope of primary care-who can manage patients with complicated chronic conditions-patients who would

have had to be referred to specialty care 5 years ago. We're also seeing growing demand for primary care

providers who are comfortable with technology. The World Wide Web gives consumers access to an abun-

dance of clinical information. Telehealth is becoming a reality as physicians "meet and treat" patients who are

hundreds of miles away.

Distance learning may be the most effective tool we have to keep practicing primary care providers ahead of

the curve-and to induce nontraditional students to enter primary care. HRSA supports 34 telemedicine

demonstration programs in rural regions and provides technical assistance to both health professions training

programs and to community health center and rural health clinic training sites. The HRSA-supported East

Carolina Area Health Education Center programs has a telehealth demonstration project that links faculty and

students at East Carolina Medical School with high school students in Greenville and addresses the students'

health concerns. We've found distance learning to be a viable option for underserved communities to "grow

their own" primary care providers. It enables local residents to be trained without ever leaving the commu-

nity-obviating the "how will we keep them down on the farm after they've seen Paree" question.

So those are some of the changes primary care training institutions need to make-recruit more diverse

students, expose them early and consistently to community-based, interdisciplinary primary care, and use

technology to reach and then train nontraditional students and to provide continuing education to practicing

providers. Some of them require the investment of funds-but many can be successfully implemented by

reallocating existing funds, under strict cost controls, and by recouping some of the costs from the ultimate

beneficiaries, including managed care organizations. I know that Howard has some thoughts on the compat-

ibility of community-based, ambulatory training and lower educational costs.

Public Policy Changes

Of course health professions training is not carried out in a vacuum. Government has a special and appropriate

interest in medical education and, because an under-supply of health professionals substantially harms the

public, government underwrites much of the cost of graduate medical education. To date, the government

most concerned with medical education has been the federal government and I don't foresee any impending

crises that could jeopardize federal support for GME. HRSA supports more than 40 health professions train-

ing programs. Our sister agency, the Health Care Financing Administration (HCFA), funds graduate medical

education through Medicare-paying teaching institutions more than $7 billion last year-and contributing

another $1.75 billion through Medicaid.

 

 

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I do see some shift in the policies that govern how those Medicare and Medicaid funds are spent. Historically,

the lion's share of Medicare and Medicaid GME funding has gone to traditional teaching hospitals that

emphasize specialty training, but policy shifts are opening the way for community-based ambulatory training

programs to receive a greater share.

HRSA is working more closely with HCFA than ever before-and as federal policy related to GME evolves,

we expect to see an increasing proportion of funds directed to ambulatory training sites and to primary care.

HCFA last year launched a major GME demonstration in New York to help participating institutions reduce

their overall number of residents while substantially increasing their proportion of primary care trainees.

We're all watching the program closely and hope it will prove to be one more way to address the conundrum

of medical education: overall oversupply, but ongoing shortfalls in diversity, in primary care, and in

underserved areas.

Last year's Balanced Budget Act initiated other changes in federal GME policy that also further HRSA's

workforce goals. Now direct payments may be made to qualified non-hospital providers, including HRSA's

community health centers and rural health clinics, if costs of approved residency programs are incurred.

It also establishes residency caps, but:

* enables non-hospital residency programs to be created without being subject to the caps;

* lets rural programs apply for exceptions to the caps; and

* authorizes a demonstration project to make direct medical education payments to consortia.

Clearly, federal policy is beginning to be more consistent and to more firmly support HRSA's and primary

care's shared goals.

HRSA is committed to further encouraging the development of unified federal policy on GME consistent with

the needs of the nation. We are monitoring the situation as it unfolds and provide feedback to HCFA, the

training institutions, the public, and others. But increasingly, federal policy is only one aspect of the public

policy equation. States, too, are recognizing an obligation to assure that their need for primary care profes-

sionals is met.

HRSA is partnering with states to bolster their capacity to develop workforce policy. We know that providers

have a tendency to practice in the states where they are trained. We are working with state legislators, health

departments, and others to help them assess their workforce needs and create policies that are friendly to

primary care education, training, and practice. We have had great interest from the states for technical assis-

tance to help them apply national analytical methods and modeling at the state, regional, and local levels-

where inadequacies in the health professions workforce are felt most acutely.

HRSA is working with them to adapt our Integrated Requirements Model so that in the near future, we will be

able to make state-level forecasts of primary care provider needs and supply.

I strongly encourage everyone involved in primary care training, likewise, to work within their own states to

educate policy makers and shape policy. Jim, I believe will shortly share his ideas on the principles that should

guide GME policy making.

Conclusion

After years of debate, I think there is general consensus that the goals HRSA and the primary care health

professions have long endorsed and worked toward-more emphasis on primary care, more providers caring

for underserved people and working in underserved areas, greater racial and ethnic diversity among provid-

ers-are both worthy and achievable.

The door is open. Now we need to step across the threshold.

 

 

 

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Government-at the federal and state levels-has to continue to adopt policies that support those goals in the

context of the health care marketplace. Health professions training institutions, for their part, have to create

programs that train providers to meet the long-term needs of the nation and to fill a niche in the marketplace.

This symposium-where we will look at lessons learned by six national initiatives that represent 37 collective

years of innovation and evaluation-is an important step in the right direction.

It falls to each of us to act on these discussions and work together to create the sustainable and substantial

changes in both organizational and public policy that will yield the health professions workforce we need to

meet the challenges of the next century.

I look forward to the discussion.