GME Funding

1
GME Funding

• Louis U. Bigliani, MD

2
Why AOA established

• June 2009

3
GME environment

• 90 of US orthopaedic residents seek fellowship
  training
• Fellowship expenses anticipated to be over 80K
  per fellow
• On average for the 2009-2010 academic year
  (per AAOS 2009
• Report on Fellowship Funding--Prelim results
  4/27/09)

4
Unfortunately

• Anecdotally, we believe half of orthopaedic
  fellowships were funded by medical device
  technology companies
• Programs had on-going, direct relationships with
  specific companies
• Support was understood to be available for future
  years
• Many companies still fund programs directly, but

5
Enter regulatory scrutiny

• The federal government charged several hip and
  knee device companies with illegal relationships
  with physicians
• Zimmer, DePuy, Biomet and Smith Nephew
  Orthopaedics signed Deferred Prosecution
  Agreements
• Companies agreed to
• Retain a compliance officer
• maintain a corporate compliance program
• develop and follow compliance guidelines

6
This has led to a new era

• Certain medical device companies are discouraged
  from directly funding specific programs
• Industry funds directed to GME seem to have been
  reduced overall
• all at a time when fellowship costs are rising
  and government support decreasing

7
AOA gets involved

• Prior to June 2008, several medical device
  companies asked AOA to help
• Their requirements
• No conflicts
• Leadership
• Review process
• Worked for all sub-specialties
• Give them as much presence and power while
  staying within the letter of the law

8
and more deeply involved

• None of the existing solutions fit the need
• So, AOA started the process to create a new,
  independent company to manage GME funding

9

• Incorporated in October 2008
• Non-profit, limited liability company
• Independent
• Separate OMeGA board, does not report to AOA
• Provides orthopaedic educational grants to
  fellowship and residency programswith
  independence and transparency.