On May 1, the Centers for Medicare and Medicaid Services published the final rule modifying CMS policies and regulations on Medicare direct GME and indirect medical education reimbursement for residents training in nonhospital sites. The Medicare statute authorizes teaching hospitals to receive DGME and IME payments associated with residents training in nonhospital sites (such as physicians' offices) if they incur "all or substantially all" of the training costs. The final rule will be published May 11 in the Federal Register and is effective with hospital cost reporting periods beginning on or after July 1. For more information, please visit www.cms.hhs.gov/LongTermCareHospitalPPS/downloads/cms-1529-f.pdf.