June 11, 2010
MERC Committee Meeting:
* Via Conference Call
Committee Members Present: Dawn Ludwig, William McBreen, Kathleen Meyerle, Jeff Ogden, Carl Patow, John Rodewald.
Alternates: Diane Buschena-Brenna for Jim Davis, Deb Mayland-Poyzer for Mary Edwards, Lynne Hvidsten for Charles Sawyer, and Tom Larson for Marilyn Speedie.Interested Parties Present:Ben Bornsztein, Gina Danyluk, Diane Del Santro, David Godfrey, Mike Harristhal, David Knowlan, Inez Lockhart, Marilyn Loen, Margo Marko, Janet McCarthy, Stacia Moeller, Merri Moody, Jay Ness, Scott Nigon, Pam Phelps, Rick Roberts, Joe Schindler, and Amy Tepp.
MDH Staff Present: Diane Reger and Diane Rydrych – Minnesota Department of Health
I. Introductory Remarks – Kathy Meyerle sub for Louis Ling, Committee Chair
Ms. Meyerle opened the meeting by thanking members and interested parties for joining
the conference call. She explained how the conference call would be conducted and
asked that feedback on this method of conducting the meeting be communicated to
MERC staff. With tight schedules for committee members we hope this method of
conducting the meeting will be beneficial to all. A roll call was then taken.
II. MDH Legislative Update – Diane Rydrych, MDH
The Governor’s recommendation to eliminate a portion of the MERC direct payments to
the Academic Health Center, UMMC-Fairview, and the UM Dental School did not pass.
There were no cuts to funding for MERC. Additional wording was added to the direct
payment to the Academic Health Center (AHC) directing a portion of the AHC’s funds to
be used to support assistance for foreign-trained physicians (language below). MDH
staff will work with the AHC to add wording to their grant agreement and discuss
administration of these funds.
(b) $5,350,000 of the available medical education funds shall be distributed as
follows:
(1) $1,475,000 to the University of Minnesota Medical Center-Fairview;
(2) $2,075,000 to the University of Minnesota School of Dentistry; and
(3) $1,800,000 to the Academic Health Center. $150,000 of the funds distributed to
the Academic Health Center under this paragraph shall be used for a program to assist
internationally trained physicians who are legal residents and who commit to serving
underserved Minnesota communities in a health professional shortage area to successfully
compete for family medicine residency programs at the University of Minnesota.
III. Update on 2010 MERC/PMAP Distributions – Diane Reger, MDH
Since there were no cuts during the legislative session, MDH is estimating that the
funding pool will be approximately $57.1 Million. An estimate was distributed at the
December 2009 meeting and as an attachment to the current agenda. Please reference
for detail.
At this time, MDH anticipates funds will be released in November or December
depending on the calculation of the Upper Payment Limit and release of federal funds by
DHS.
Ms. Reger will provide revenue information to the larger providers within the next week.
If smaller providers are part of the call and wish to receive information on the data that
will be used in the MERC calculation, they can contact Diane Reger.
The 2011 application process will begin in mid-August. When the 2011 application is
available, a notice will be sent to sponsoring institutions. Please note when completing
the application, it’s important to make sure the correct training site is being selected.
Some provider groups have a shared NPI number among many locations, selecting the
location where training took place is very important in the process. Should applicants
have ideas on improving the application process, please feel free to send a note to Diane
Reger with recommendations. The programmer’s time is very limited, but we welcome
feedback to improve the process.
IV. MERC Potential Workgroup – Diane Rydrych, MDH
Both Ms. Meyerle and Ms. Rydrych gave background on the inception of MERC, why it
was created and the changes and challenges it’s faced over time. Ms. Meyerle asked
the committee to think about why the MERC program and the advisory committee are
doing what they’re doing, and whether there need to be any changes to MERC to
enhance it and achieve its goals.
In the light of healthcare reform, changes to the MERC formula that have impacted
distribution of funds, and the potential for changing pressures and priorities for GME
that have evolved over the 15 years since the inception of MERC, MDH would like to
put together a work group to look at the goals and priorities for MERC. Potential
questions for the workgroup include: Are the highest priority goals for health
professions education in Minnesota the same now as they were in 1996? Does health
reform present any new challenges or opportunities for MERC? Is the current MERC
formula adequate to meet current goals for health professions education as identified
by the community/ stakeholders? Are there ways to work within the existing
state/federal constraints to better meet the goals of MERC? Are there changes that will
ease the administrative burden of MERC?
Ms. Meyerle asked committee members for feedback. Many were interested in being
involved in future discussions. Ms. Meyerle requested that comments or suggestions
for who should be included in these discussions be forwarded via email by June 30, to
Diane Rydrych. MDH will consider the composition of the group and will invite a group
to meet later this summer or in the fall.
V. Upcoming meeting dates
The next regularly scheduled MERC meetings will be held from 1 – 4 p.m. in the Bigfork
Room at Snelling Office Park on Friday, December 3, 2010. For directions and further
information, please visit:
http://www.health.state.mn.us/divs/hpsc/hep/merc/committee/index.html

