Overview
The Economic Strategy Pillar strengthens the pediatric workforce by addressing the financial and payment structures that shape recruitment, retention, and access to care.
The long-term goal is structural reform of pediatric payment systems. At the same time, shifts in health policy and continued uncertainty in Medicaid financing require departments to strengthen near-term financial stability.
Our current strategy prioritizes:
- Developing advocacy leadership within pediatric departments
- Increasing understanding of payment policy and valuation processes
- Advancing strategies that improve near-term funds flow
- Supporting loan repayment as a recruitment and retention mechanism
These efforts help departments stabilize locally while positioning pediatric leaders to shape sustainable payment policy over time.
Pediatric care is financed differently than adult care – and often less favorably.
- Medicaid covers a large proportion of children, yet reimbursement rates are typically lower than Medicare and commercial payers
- Many pediatric services are time-intensive and coordination-driven, yet RVU methodologies place greater weight on procedural services.
- Improved documentation and appropriate use of existing CPT codes can ensure reimbursement more accurately reflects the time and complexity of pediatric care.
- Subspecialty compensation disparities influence career decisions and workforce distribution
- Academic departments must sustain missions that extend beyond clinical care, often without aligned financial support
Without targeted reform, these structural factors will continue to:
- Constrain recruitment into pediatrics and pediatric subspecialties
- Limit department growth and innovation
- Reduce geographic access to subspecialty care
- Exacerbate disparities in child health
Our Approach
The Economic Strategy Pillar’s near-term strategies emphasize areas where Pediatric Department Chairs can have the greatest immediate impact – strengthening coding practices to optimize existing payment structures and building sustainable departmental advocacy leadership – while continuing targeted engagement in national efforts.
One focus area centers on educating pediatric leaders about how CPT codes are developed, how RVUs are assigned, and how institutional funds flow affects departmental sustainability. With this foundation, departments can improve coding accuracy, ensure appropriate valuation of services already provided, and strengthen near-term financial performance to support faculty compensation and recruitment.
In parallel, we support departments in developing structured advocacy roles and strengthening engagement with institutional Government Relations teams and local coalitions.
We also continue partnership and advocacy efforts to strengthen the Pediatric Specialty Loan Repayment Program (PSLRP) as a mechanism to support recruitment and retention of pediatric subspecialists.
As departments build expertise and infrastructure, they are better positioned to influence pediatric payment policy at both state and national levels.