42 CFR § 412.322 - Indirect medical education adjustment factor.
(a) Basic data. CMS determines the following for each hospital:
(3) The measurement of teaching activity is the ratio of the hospital's full-time equivalent residents to average daily census. This ratio cannot exceed 1.5.
(b) Payment adjustment factor. The indirect teaching adjustment factor equals [e (raised to the power of .2822 × the ratio of residents to average daily census)−1].