This bill establishes a new system for distributing up to 2,000 additional Medicare-funded residency positions annually from 2026 through 2032, prioritizing hospitals serving underserved areas, and mandates a study on strategies to increase workforce diversity.
Terri Sewell
Representative
AL-7
The Resident Physician Shortage Reduction Act of 2025 establishes a structured process for distributing up to 2,000 additional, federally funded residency positions annually between fiscal years 2026 and 2032. This distribution prioritizes hospitals serving in underserved areas, those already training above their limit, and those committed to primary care and general surgery training. The bill also mandates a study and report by the Comptroller General on effective strategies to increase diversity within the health professional workforce.
The Resident Physician Shortage Reduction Act of 2025 is tackling the doctor shortage head-on by creating 14,000 new, federally funded residency training slots over the next seven years, starting in fiscal year 2026. Think of it as a massive, structured hiring and training drive for new doctors, funded by Medicare, which is crucial because a doctor can’t practice independently until they complete this residency phase.
The bill sets up a clear distribution schedule, aiming to hand out up to 2,000 new slots annually through 2032. If they don't hit the 14,000 total by then, the distribution process keeps going until the goal is met. This isn't just a blanket giveaway, though; the bill is highly strategic about where these doctors will train and what specialties they will focus on.
This legislation is designed to solve two major problems: the lack of primary care doctors and the difficulty of getting medical care in rural areas. It does this through targeted allocations. For instance, one-third of the slots each year are specifically set aside for hospitals that are already training more residents than their current cap allows. However, to get these reserved slots, the hospital must agree to dedicate at least 25% of their training positions to primary care and general surgery for the next five years. If they break that commitment, the government can actually take those slots back—a serious incentive to focus on high-need fields.
For people living outside major metro areas, the bill offers a significant boost. At least 10% of the total available slots must go to hospitals in rural areas or those serving designated Health Professional Shortage Areas (HPSAs). This means a hospital in a small town that currently struggles to attract doctors could suddenly gain the capacity to train—and potentially retain—new physicians. For example, a hospital in a rural HPSA could apply for these slots, increasing the odds that a newly trained doctor decides to stay and practice in that community, improving local access to care.
The bill also weaves in requirements aimed at increasing diversity in the medical field. It prioritizes slots for HPSA hospitals that are affiliated with historically Black medical schools or similar institutions, recognizing that diverse doctors often return to serve diverse communities. This isn't just about fairness; it’s about making sure the healthcare system reflects the people it serves.
Beyond the slots, the bill mandates that the Comptroller General (the head of the GAO) conduct a comprehensive study on the best strategies for increasing diversity in the health workforce, specifically focusing on attracting people from rural areas, low-income backgrounds, and underrepresented minority groups. This report, due to Congress within two years, should provide a roadmap for future policy, ensuring that the focus on diversity continues.
For hospitals, this is a golden opportunity, but it comes with strings attached. Any hospital receiving an increase must formally agree to fill those positions. Furthermore, the Secretary of Health and Human Services has discretion over how to distribute the remaining slots, prioritizing hospitals that are “likely to actually fill” the positions within five years. This vagueness means that hospitals will need strong, data-backed plans to convince the government they are serious about expanding their training capacity.
Overall, this bill is a highly specific, multi-year plan designed to funnel new doctors into the places and specialties where they are needed most. It’s a complex piece of legislation, but the real-world outcome is simple: more doctors, better distributed, and a stronger focus on primary care for communities currently struggling to find adequate medical help.