How to Apply and Who's Eligible for Millions of Dollars in Funding Available for New Residency Programs and Expansions Through THCGME Grant Opportunities Payment Matters

Summary of Grant Opportunities

Application Deadline: Below is the application deadline for each funding opportunity.

• AY 2024-2025: September 5, 2024
• AY 2025-2026: September 20, 2024

Eligibility: Community-based ambulatory patient care centers are eligible for THCGME funding. Below are examples of community-based ambulatory patient care centers:

• Federally Qualified Health Centers;
• Community Mental Health Centers;
• Rural Health Clinics;
• Health centers operated by the Indian Health Service, an Indian tribe or tribal organization, or an urban Indian organization; and
• An entity receiving funds under Title X of the Public Health Service (PHS) Act.

The eligible community-based ambulatory patient care center must operate an accredited primary care residency program, or must have formed a GME consortium that operates an accredited primary care residency program, in one of the following specialties/disciplines:

• Family Medicine;
• Internal Medicine;
• Pediatrics;
• Internal Medicine-Pediatrics;
• Obstetrics and Gynecology;
• Psychiatry;
• General Dentistry;
• Pediatric Dentistry; or
• Geriatrics.

Funding Priorities: Applicants can receive funding preference under one or more of the following priorities:

1. Health Professional Shortage Area (HPSA) Priority for applicants whose primary training site is located in a Primary Care, Dental Health, or Mental Health HPSA;

1. Medically Underserved Community Priority for applicants whose primary training site serves a medically underserved community as defined in section 799B of the PHS Act; and

1. Rural Priority for applicants whose primary training site is located in a rural area as defined in section 1886(d)(2)(D) of the Social Security Act.

Types of Awards: Two award types are available:

• Expansion awards for an increased number of resident Full-Time Equivalent (FTE) positions at existing HRSA THCGME Programs; and
• New awards to support new resident FTE positions at new Teaching Health Centers (THCs). New THCs are those applicants seeking funding for residency programs that have never received payment under the HRSA THCGME Program for the applicable residency program in any previous fiscal year.

Award Amounts:

• AY 2024-2025:
  • Total Grant Funding: estimated $10 million;
  • The FY 2025 HRSA THCGME Program payment is formula-based and provides a payment for both DME and IME expenses. The FY 2025 per resident amount will be $160,000 per resident FTE. Future per-resident amounts may vary based on funding and changes as determined; and
  • Estimated Funding Range per Award: $160,000 to $10 million.
    
• AY 2025-2026:
  • Total Grant Funding: estimated $80 million;
  • The FY 2025 HRSA THCGME Program payment is formula-based and provides a payment for both DME and IME expenses. The FY 2025 per-resident amount will be $160,000 per resident FTE. Future per-resident amounts may vary based on funding and changes as determined; and
  • Estimated Funding Range for Award: $160,000 to $10,252,864.

Project Time Period:

• AY 2024-2025: HRSA plans to fund awards that cover a four-year period of performance from November 1, 2024, to June 30, 2029.
  

  Year	Start Date	End Date
  1	November 1, 2024	June 30, 2026
  2	July 1, 2026	June 30, 2027
  3	July 1, 2027	June 30, 2028
  4	July 1, 2028	June 30, 2029

  
  For Year 1, awardees may use funds to support resident FTE costs from up to 90 days before the award - meaning retroactive to August 1, 2024.
  
• AY 2025-2026: HRSA plans to fund awards that cover a four-year period of performance from July 1, 2025, to June 30, 2029.
  

  Year	Start Date	End Date
  1	July 1, 2025	June 30, 2026
  2	July 1, 2026	June 30, 2027
  3	July 1, 2027	June 30, 2028
  4	July 1, 2028	June 30, 2029

Takeaways

The new THCGME grant announcements offer eligible ambulatory settings - especially for those located in rural areas, medically underserved areas, and HPSAs - a great opportunity to obtain funding to establish new residency programs and positions. For eligible providers interested in creating or expanding primary care/family medicine, psychiatry, and dental residency programs, these grants can make these projects financially feasible. As a result, such providers should carefully and promptly consider whether they qualify and should apply for a grant.

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If you would like assistance with applying for these grant opportunities, questions, or further analysis regarding GME payment opportunities and other federal and state funding for graduate medical education programs, please contact Allison Cohen and Alex Lewis or any other member of Baker Donelson's Reimbursement Group.

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