Newswise — AAMC (Association of American Medical Colleges) President and CEO Darrell G. Kirch, M.D., issued the following statement today on the agreement reached by the hospital community, the Obama administration, and the Senate Finance Committee in support of health care reform:

"The AAMC strongly supports the agreement announced today and believes it moves our nation closer to achieving meaningful health care reform. U.S. teaching hospitals provide 71 percent of all hospital-based charity care and are often the only source of specialized services in their communities. We greatly appreciate the thoughtful approach this agreement takes to guarantee that the safety net remains intact during the transition to a better system.

This accord helps to fulfill two key principles that the AAMC established for health care reform last year, namely that all Americans should have health care coverage, and that existing safety net mechanisms be supported and preserved until new ones are in place. By voluntarily accepting reduced market increases in hospital payments over the next decade, hospitals will contribute $100 billion toward the funding needed to provide all Americans with health insurance. We also are pleased that this agreement takes appropriate steps to ensure that new coverage mechanisms are in place before any reductions are made to Disproportionate Share payments. Congress and the administration will need to continually evaluate the effects of coverage expansion before making any cuts that could jeopardize the safety net for the uninsured and underinsured.

The nation's teaching hospitals are working hard to help expand access to health care while maintaining an environment where clinical care, discovery, and the training of the next generation of health professionals can occur—and will continue to make sacrifices as long as patient care comes first. As the Obama administration and Congress move forward with health care legislation, the AAMC and its members stand ready to make the positive changes needed for successful reform."

The Association of American Medical Colleges is a not-for-profit association representing all 131 accredited U.S. and 17 accredited Canadian medical schools; nearly 400 major teaching hospitals and health systems, including 68 Department of Veterans Affairs medical centers; and nearly 90 academic and scientific societies. Through these institutions and organizations, the AAMC represents 125,000 faculty members, 75,000 medical students, and 106,000 resident physicians. Additional information about the AAMC and U.S. medical schools and teaching hospitals is available at www.aamc.org/newsroom.

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