Teaching Hospital
A hospital affiliated with a medical school that trains resident physicians — typically larger, more complex, and higher-cost than community hospitals, but often offering more advanced care.
How It Works
Teaching hospitals account for about 5% of all U.S. hospitals but handle 25% of all Medicare discharges and an even larger share of the most complex cases. They receive additional Medicare payments through the Indirect Medical Education (IME) adjustment, which adds 5-10% to their base DRG payment. Teaching hospitals tend to have higher costs because they: treat more complex patients, perform more research, use more expensive technology, and operate less efficiently due to the teaching mission. However, studies show that teaching hospitals often have better outcomes for complex procedures — the expertise from treating the most difficult cases benefits all patients.
Related Terms
- CMS Star Rating (Hospital Overall Rating) — A 1-to-5 star rating assigned by CMS to hospitals based on quality measures — covering mortality, safety, readmissions, patient experience, and timely care.
- Case Mix Index (CMI) — A measure of the average complexity and resource intensity of a hospital's patients — higher CMI means the hospital treats sicker, more complex patients.
- Critical Access Hospital (CAH) — A small, rural hospital (25 beds or fewer) designated by CMS to receive cost-based reimbursement — ensuring rural communities maintain access to essential hospital services.
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About This Definition
This definition is part of the HospitalCostData Hospital Pricing Glossary — 25 terms explaining hospital costs, quality ratings, and healthcare billing. Written for patients, journalists, researchers, and healthcare professionals.