Congress Proposes Adding Thousands of Medicare-Funded Residency Positions

By Jonathan Springston, Editor, Relias Media

Federal lawmakers have introduced legislation aimed at alleviating healthcare staffing shortages by expanding the number of Medicare-funded residency positions.

Through the Resident Physician Shortage Reduction Act of 2023, Congress would add 2,000 such positions annually over seven years to reach 14,000. These positions are targeted to hospitals already training over their resident caps, facilities operating in rural areas, hospitals operating in states that have recently opened new medical schools or branch campuses, and medical facilities serving areas classified as health professional shortage areas.

“We are facing an urgent physician shortage that will only get worse as our population continues to age,” said U.S. Rep. Terri Sewell, D-AL, lead bill sponsor. “This critical legislation will give hospitals and health centers the tools they need to improve access to care, lower wait times for patients, and create a pipeline of qualified medical professionals to serve Americans’ health needs.”

The American Association of Medical College (AAMC) estimates that by 2034, the United States will be short 124,000 needed physicians, exacerbating a staffing problem that exists today.

“The past three years have added serious strains on this [healthcare] workforce,” said AAMC President and CEO David J. Skorton, MD. “By strategically targeting these new medical residency positions at a wide variety of teaching hospitals, we are also strengthening and diversifying the healthcare workforce and improving critical access to care for patients, families, and communities across the country.”

The American Hospital Association (AHA) notes the graduate medical education (GME) program is hampered by the fact there is a cap on the number of residency positions for which hospitals may receive direct GME funding. In December 2020, Congress provided funding for 1,000 new positions, the first such expansion in years. The AHA praised Sewell and colleagues for “responsibly address[ing] the nation’s urgent need for additional physicians.

Tucked into the Resident Physician Shortage Reduction Act is a direction to the Government Accountability Office to produce a study about how the healthcare industry can diversify its workforce, especially by hiring from rural, lower income, and underrepresented minority communities. AHA also praised this part of the proposal.

For more on this and related subjects, be sure to read the latest issues of Healthcare Risk Management and Hospital Employee Health.