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Hospitals urge lawmakers to retain Medicaid graduate medical education funding after DHS lists cut
Summary
DSS included elimination of state Medicaid support for graduate medical education in its recommended cuts; hospital and provider advocates from Avera, Sanford and the South Dakota Association of Healthcare Organizations asked legislators to preserve GME funding, arguing residencies are critical to recruitment and retention.
The Department of Social Services listed the state subsidy for graduate medical education (GME) among items recommended for elimination in the governor’s FY2026 budget recommendation; DSS staff said the line was an optional subsidy and other payer sources exist. Committee members heard hospital and provider testimony urging retention of the funding.
DSS presentation and recommendation In the Department of Social Services FY2026 briefing, agency staff listed elimination of the state contribution to graduate medical education as a line change. DSS staff described the subsidy as an additional braided funding…
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