PolicyBrief
H.R. 870
119th CongressJan 31st 2025
Physicians for Underserved Areas Act
IN COMMITTEE

This bill amends the Social Security Act to improve the process of redistributing Medicare-funded residency slots when a hospital closes, prioritizing facilities that can quickly utilize these slots, ensuring continued medical training in underserved areas.

Susie Lee
D

Susie Lee

Representative

NV-3

LEGISLATION

Medicare Residency Slot Redistribution Gets a Boost: New Bill Prioritizes Quick Placement to Serve Underserved Areas

The "Physicians for Underserved Areas Act" tackles the tricky issue of what happens to Medicare-funded residency slots when a hospital shuts down. Instead of a slow, bureaucratic process, this bill aims to get those slots reallocated fast to hospitals ready to train new doctors, particularly in areas that need them most.

Residency Slot Shuffle

This bill revises Section 1886(h)(7) of the Social Security Act, changing how residency slots are redistributed after a hospital closes. The key change? Prioritizing hospitals that can prove they'll use those slots quickly. Think of it like this: if a hospital closes, those training spots for new doctors shouldn't sit idle. This bill makes sure they get into the hands of hospitals that can put them to work within two years and fill all of those new slots within a total of five years, from the hospital closure. This will be effective for hospitals that close on or after the date that this Act is enacted.

Real-World Impact: From City Centers to Rural Towns

Imagine a rural hospital struggling to attract doctors. If a larger hospital nearby closes, this bill helps ensure those freed-up residency slots could go to the rural facility, if they can demonstrate a plan to quickly utilize and fill those positions. That means more doctors-in-training, and eventually, more practicing physicians in areas where healthcare access might be limited. This isn't just about hospitals; it's about patients getting the care they need, where they need it.

For instance, a community health center in an underserved urban neighborhood could also benefit. If they can show they've got the infrastructure and patient demand to support new residents, they could be prioritized in the redistribution process. This could mean more primary care doctors, specialists, and other healthcare professionals serving that community.

Speeding Up the Process

The whole point is efficiency. By focusing on hospitals that can rapidly integrate new residents, the bill aims to minimize any lag time between a hospital closure and those residency slots being put back into use. This could be a game-changer for areas facing physician shortages, where every trained doctor counts.

Potential Roadblocks

Of course, there's always the practical side. Hospitals will need to demonstrate their ability to quickly absorb and fill these slots. Showing a clear plan and proving their capacity will be key. This could also create some competition between hospitals vying for those coveted residency positions.