SEC. 1744. PAYMENTS FOR GRADUATE MEDICAL EDUCATION.

[a] In General- Section- 1905 of the Social Security Act [42 U.S.C. 1396d], as amended by sections 1701[a][2], 1711[a], and 1713[a], is amended by adding at the end the following new subsection:

'[bb] Payment for Graduate Medical Education-

'[1] IN GENERAL- The term 'medical assistance' includes payment for costs of graduate medical education consistent with this subsection, whether provided in or outside of a hospital.

'[2] SUBMISSION OF INFORMATION- For purposes of paragraph [1] and section 1902[a][13][A][v], payment for such costs is not consistent with this subsection unless--

'[A] the State submits to the Secretary, in a timely manner and on an annual basis specified by the Secretary, information on total payments for graduate medical education and how such payments are being used for graduate medical education, including--

'[i] the institutions and programs eligible for receiving the funding;

'[ii] the manner in which such payments are calculated;

'[iii] the types and fields of education being supported;

'[iv] the workforce or other goals to which the funding is being applied;

'[v] State progress in meeting such goals; and

'[vi] such other information as the Secretary determines will assist in carrying out paragraphs [3] and [4]; and

'[B] such expenditures are made consistent with such goals and requirements as are established under paragraph [4].

'[3] REVIEW OF INFORMATION- The Secretary shall make the information submitted under paragraph [2] available to the Advisory Committee on Health Workforce Evaluation and Assessment [established under section 2261 of the Public Health Service Act]. The Secretary and the Advisory Committee shall independently review the information submitted under paragraph [2], taking into account State and local workforce needs.

'[4] SPECIFICATION OF GOALS AND REQUIREMENTS- The Secretary shall specify by rule, initially published by not later than December 31, 2011--

'[A] program goals for the use of funds described in paragraph [1], taking into account recommendations of the such Advisory Committee and the goals for approved medical residency training programs described in section 1886[h][1][B]; and

'[B] requirements for use of such funds consistent with such goals.

Such rule may be effective on an interim basis pending revision after an opportunity for public comment.'.

[b] Conforming Amendment- Section- 1902[a][13][A] of such Act [42 U.S.C. 1396a[a][13][A]] is amended--

[1] by striking 'and' at the end of clause [iii];

[2] by striking '; and' and inserting ', and'; and

[3] by adding at the end the following new clause:

'[v] in the case of hospitals and at the option of a State, such rates may include, to the extent consistent with section 1905[bb], payment for graduate medical education; and'.

[c] Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act. Nothing in this section shall be construed as affecting payments made before such date under a State plan under title XIX of the Social Security Act for graduate medical education.