Medical Education and Research Costs (MERC) 1998 Trust Fund Distribution

The MERC Trust Fund was established in 1996 to provide funding for the clinical training of selected medical professions. The purpose of this funding is to compensate teaching facilities for a portion of the costs of clinical training provided in a patient care setting. These are costs that have traditionally been covered by teaching facilities charging higher rates for patient care, a strategy that is becoming more and more difficult as competition increases.

The MERC Trust Fund was established in 1996 and funded in 1997, with $5 million from the General Fund and $3.5 million from the Health Care Access Fund. In addition, $9.26 million in Federal matching funds have been approved by HCFA, bringing the total Trust Fund for 1998 distribution to $17.76 million.

Provider types included in the MERC Trust Fund

  • Advanced Practice Nurses

  • Dental Students

  • Dental Residents

  • Medical Students

  • Medical Residents

  • PharmD Students

  • PharmD Residents

  • Physician Assistants

$8,500,000 General Access Fund

$9,260,133 Federal Match

$17,760,133 Total 1998 Trust Fund

Applications for the 1998 MERC Trust Fund were due in November, 1997. The Trust Fund received 16 applications on behalf of 154 teaching programs, representing over 300 sites of training and 2,710 trainees. Applications are submitted by Sponsoring Institutions, the organizations that are organizationally and/or financially responsible for one or more teaching programs. Funds will be disbursed to the sponsoring institutions, with explicit requirements to pass the funds through to the training sites where clinical training takes place. Many entities in Minnesota are both sponsoring institutions and training sites. Many hospitals and clinics are training sites for several different teaching programs.

Sponsoring Institution graphic

The 1998 MERC Trust Fund is distributed based on a formula which reflects the number of eligible FTEs at a particular site as well as the statewide average cost of clinical training for that provider type. The Trust Fund reimburses a uniform percentage of clinical training costs for each of the 8 provider types. For the 1998 Trust Fund, this percentage is 5.9%. The annual average clinical training costs per trainee vary significantly across the 8 provider types (See table below, data from MERC applications, based on audited financial data from fiscal 1996.)

MERC Distribution by Provider Type

Provider Type

Number of  Programs

Eligible FTEs

Average Cost Per Trainee*

Adjusted Total Costs**

% of Trust Fund

Grant Amount

Grant per Trainee

% of Costs Covered

Advanced Practice Nurses

11

165.0700

$20,537

$3,390,043

1.1255%

$199,899

$1,211

5.90%

Dental Students

1

107.2100

$105,788

$11,341,531

3.7656%

$668,771

$6,238

5.90%

Dental Residents

12

76.0400

$136,052

$10,345,394

3.4348%

$610,032

$8,023

5.90%

Medical Students

5

513.3031

$23,489

$12,056,977

4.0031%

$710,958

$1,385

5.90%

Medical Residents

117

1,783.6124

$146,765

$261,771,874

86.9125%

$15,435,778

$8,654

5.90%

PharmD Students

1

28.9000

$22,093

$638,488

0.2120%

$37,649

$1,303

5.90%

PharmD Residents

6

16.2500

$60,796

$987,935

0.3280%

$58,255

$3,585

5.90%

Physician Assistants

1

20.3750

$32,287

$657,848

0.2184%

$38,791

$1,904

5.90%

Total

154

2,710.7605

$111,109

$301,190,089

100%

$17,760,133

$6,552

5.90%

*Average Cost per Trainee was calculated by taking the Total Clinical Costs for all programs of a particular provider type and dividing this total by the Total FTEs for that provider type.

**Adjusted Total Costs is calculated by taking the Average Cost per Trainee times the number of eligible FTEs.


Distribution of Trust Fund by Provider Type


Average Cost for Clinical Training by Provider Type


Metro / Non-Metro

Trust Fund Distribution: Metro / Non-Metro


Settings Trust Fund Distribution


Applications and Disbursements for the 1998 MERC Trust Fund

Applications to the 1998 Trust Fund

Sponsoring Institution

City

Teaching Programs

Eligible FTEs

Abbott Northwestern Hospital

Minneapolis

2

32.0000

Allina Health System/United Hospital

Minneapolis

1

17.0300

Augsburg College

Minneapolis

1

20.3750

College of St. Catherine

St. Paul

1

13.2500

College of St. Scholastica

Duluth

2

15.3000

Duluth Medical Education Council

Duluth

1

29.0000

Hennepin County Medical Center

Minneapolis

11

192.9100

Mankato State Univ. School of Nursing

Mankato

1

15.9150

Mayo Foundation

Rochester

64

919.4284

Minneapolis Sports Medicine Center

Minneapolis

1

1.6000

Regions Hospital

St. Paul

6

62.8900

St. Mary's Hospital Univ. of Minnesota

Minneapolis

1

38.0000

United Hospital and Children's Healthcare

St. Paul

2

3.2500

Univ. of  MN Academic Health Center

Minneapolis

57

1,323.4871

Winona State University

Winona

2

18.3500

Women's Healthcare Nurse Prac. Program

St. Paul

1

7.9750

TOTAL    

154

2,710.7605

The above sponsoring institutions have applied on behalf of the teaching programs they administer and the training sites used by these teaching programs. As required by the MERC statute, the applications report for each teaching program: costs of clinical training, revenues associated with medical education, information on accreditation, and information on the training sites used by the teaching program, and the number of Full Time Equivalents (FTEs) trained at each training site. Funding from the MERC Trust Fund is directed to the Sponsoring Institutions, with specific requirements that these funds be forwarded to the actual training sites.

Applications are coordinated by, and funding directed to, the Sponsoring Institutions, rather than the training sites, to preserve the integrity of the teaching programs, and so that accurate and complete information about medical education teaching programs can be obtained.

The MERC Trust Fund dollars will flow from the Trust Fund through the Sponsoring Institutions to the training sites. The table below reports information on how much of the MERC Trust Fund will be received by the training sites used for medical education in Minnesota. As mentioned above, many of these hospitals and clinics are training sites for numerous teaching programs, and for this table, we have summed the grant amounts each site will receive from each of the teaching programs they participate in, so that their total revenue from MERC is reflected.

MERC Trust Fund 1998 Clinical Training Sites

Training Site

City

Number of Eligible Trainees

Percent of Trust Fund

Grant Amount

St. Mary's Hospital

Rochester

384.69

16.86%

$2,994,574

Mayo Clinic

Rochester

370.27

16.27%

$2,890,271

Hennepin County Medical Center

Minneapolis

375.89

13.87%

$2,463,066

Fairview University Medical Center

Minneapolis

308.33

11.42%

$2,027,792

Regions Hospital

St. Paul

207.43

7.61%

$1,350,994

Rochester Methodist Hospital

Rochester

156.78

7.00%

$1,243,215

U of MN Dental School Clinic

Minneapolis

156.03

5.97%

$1,060,430

Fairview Riverside Hospital

Minneapolis

83.88

3.75%

$665,495

Abbott Northwestern Hospital

Minneapolis

74.90

2.12%

$376,657

North Memorial Medical Center

Robbinsdale

39.08

1.47%

$261,705

Children's Healthcare St. Paul

St. Paul

43.21

1.40%

$248,168

University of Minnesota Surgery

Minneapolis

22.00

1.07%

$190,393

St. Joseph's

St. Paul

19.63

0.87%

$155,344

Children's Health Care Minneapolis

Minneapolis

28.33

0.77%

$137,424

St. Joseph's

St. Paul

19.63

0.87%

$155,344

Health System MN

St. Louis Park

14.88

0.73%

$128,775

Mayo Psychiatry and Psychology Treatment Center

Rochester

14.90

0.64%

$114,410

St. Luke's Hospital of Duluth

Duluth

14.06

0.61%

$109,000

United Hospital

St. Paul

13.14

0.60%

$106,113

St. Mary's Medical Center

Duluth

12.25

0.53%

$93,425

St. John's Hospital HealthEast

Maplewood

11.01

0.41%

$73,476

University Affiliated Family Physicians

St. Paul

8.42

0.41%

$72,869

HealthPartners

Bloomington

19.92

0.40%

$70,185

Duluth Family Practice Center

Duluth

16.95

0.38%

$66,728

Methodist Hospital

St. Louis Park

13.34

0.37%

$66,096

Gillette Children's Hospital

St. Paul

6.65

0.27%

$47,200

Duluth Clinic

Duluth

32.37

0.25%

$44,500

Rural Physician Center

Minneapolis

23.00

0.18%

$31,856

Park Nicollet Clinic Minneapolis

9.02

0.15%

$25,810

St. Cloud Hospital

St. Cloud

3.29

0.14%

$25,518

Community-University HealthCare Center

Bloomington

4.79

0.14%

$24,732

Mankato Clinic

Mankato

4.49

0.12%

$21,812

University of MN Lab & Pathology

Minneapolis

2.46

0.12%

$21,289

Park Nicollet Hand Center

St. Louis Park

2.00

0.10%

$17,308

Institute for Research and Education

Minneapolis

2.00

0.10%

$17,308

Family Practice Center

St. Cloud

1.88

0.09%

$15,466

Unity Hospital

Fridley

2.59

0.08%

$14,971

Waseca Area Medical Center

Waseca

1.93

0.08%

$13,431

Duluth Ob/Gyn Assoc.

Duluth

9.19

0.07%

$12,734

Colon and Rectal Surgery Assoc.

St. Paul

1.19

0.06%

$10,299

Other Clinics - Combined   

163.68

2.20%

$391,518

Other Hospitals - Combined   

30.92

0.33%

$57,774

              
Total   

2,710.76

100.00%

$17,760,133

Updated Tuesday, November 16, 2010 at 12:25PM