News Releases

The future of children’s health care in Pittsburgh, PA and across the country brightened considerably as Congress passed the FY2001 Labor/HHS Appropriations Bill, providing $235 million for graduate medical education (GME) programs at independent children’s teaching hospitals such as Children’s Hospital of Pittsburgh. It represents nearly a six-fold increase over last year.

The legislation has been sent to President Clinton to sign into law. Once signed, Children’s Hospital of Pittsburgh stands to gain significantly from increased federal funding for GME next year.

“This action is a major step toward completing what Congress began to do in 1999 – provide the same level of federal GME support to independent children’s hospitals, which it already provides to other teaching hospitals through the federal Medicare program. Children’s Hospital of Pittsburgh enthusiastically applauds Senator Arlen Specter (R-PA), chairman of the Senate Labor/HHS Appropriation Subcommittee, for his invaluable leadership. His efforts and Congress’ passage of equitable funding make an enormous contribution to our ability to train physicians and to provide top quality care devoted to the unique health care needs of all children,” said Ronald Violi, president and chief executive officer of Children’s Hospital of Pittsburgh.

Mr. Violi also commended Sen. Rick Santorum (R-PA), as well as Reps. John Peterson (R-PA), John Murtha (D-PA), and Phil English (R-PA), for their early and strong support for equitable GME funding for children’s hospitals, among many others in the Pennsylvania congressional delegation.

In 1999, Congress addressed the GME federal funding gap for the first time. With strong support, it took an historic first step and appropriated $40 million in new start-up funding to help independent children’s teaching hospitals in FY2000. It also authorized up to $285 million – the amount comparable to what other teaching hospitals receive in federal GME support under Medicare – to be appropriated in FY2001. On October 17, the authorization was extended to FY2005 when Congress passed and President Clinton signed the “Children’s Health Act of 2000.” The $235 million appropriation goes more than 80% of the way to reaching full funding.

Last month, the Health Resources and Services Administration carried out the FY2000 $40 million appropriation by awarding 56 children’s hospitals federal payments for their GME programs. HRSA announced the awards in Washington, D.C. with the National Association of Children’s Hospitals (N.A.C.H.). Children’s Hospital of Pittsburgh received more than $1.1 million of this start-up funding.

“Forty million was an important first step towards equitable GME funding. This year, Congress has proven its commitment to quality pediatric care for America’s families by supporting children’s teaching hospitals with a major increase in GME support that takes us more than 80% of the way to full funding,” said Lawrence A. McAndrews, president and CEO of N.A.C.H. “We look forward to working with Congress to achieve equitable GME support next year.”

The funding disparity has been a growing cause for concern for independent children’s teaching hospitals because almost a third of all pediatricians and nearly half of pediatric specialists train at one of the country’s independent children’s teaching hospitals. Locally, a significant percent of pediatricians and specialists trained at Children’s Hospital of Pittsburgh go on to practice in the metropolitan area. Furthermore, children’s hospitals are often the only source of care in a regional area for many critical pediatric services.

As managed care moved into the health care marketplace, traditional sources of GME support for all teaching hospitals began to dry up leaving Medicare the one remaining, significant source of GME funding. Left largely outside of this funding stream because they treat children, not the elderly, many children’s teaching hospitals began to face difficult choices, such as continuing their GME programs at the expense of closing other important community service programs such as child abuse prevention or other specialty services.

“This is one of the most important investments Congress can make in the health of all children,” said Mr. Violi. “It will benefit children in every state in the country, because the independent children’s teaching hospitals train a disproportionately large share of our nation’s pediatric workforce. They also are centers of high quality clinical care and research for the health care needs of all children.”

Because children’s hospitals are centers for specialized pediatric training, research, and clinical care, they are able to care for children suffering from a wide range of illnesses and conditions, including those with the most severe conditions.

In fact, while just one percent of all hospitals, independent children’s teaching hospitals treat more than 15 percent of all hospitalized children, which in 1997 totaled 2.9 million, including:

• 40% of all infants requiring major operations;
• 45% of all children with cystic fibrosis
• 47% of all children requiring chemotherapy
• 57% of all children requiring spinal operations; and
• 75% of all newborns requiring organ transplants.

Contact:
DeAnn Marshall, 412-692-5016