New Bill Adds 14,000 Medicare-Funded Physician Training Slots, Targeting Rural and Underserved Areas

The Resident Physician Shortage Reduction Act of 2025 is aiming to tackle the doctor shortage problem by significantly boosting the number of doctors in training. Here’s the deal: starting in fiscal year 2027 and running through 2033, the federal government will fund 2,000 new residency positions annually, totaling 14,000 new slots across the country. These aren't just any slots; they are Medicare-funded graduate medical education (GME) positions, which is the key bottleneck for turning medical school graduates into practicing doctors.

The Doctor Pipeline Gets a Wider Valve

This bill directly addresses the fact that the U.S. has capped the number of federally funded residency slots for decades, even as medical school enrollment has increased. Think of it like this: you can build more factory lines (medical schools), but if the final inspection stations (residencies) can’t handle the volume, you still have a massive backlog. This legislation authorizes the Secretary to distribute these 14,000 new spots over seven years, with a hard cap of 75 total slots per hospital during this period (though that cap could be raised if demand is low).

Crucially, the bill mandates that these slots are targeted where they’re needed most. At least 10% of the available positions must go to hospitals in rural or isolated areas, and another 10% must go to hospitals serving Health Professional Shortage Areas (HPSAs). If you live in a small town where the nearest specialist is an hour drive away, this is the provision that might eventually put a new pediatrician or family doctor closer to home. The goal is to ensure that the increased capacity doesn’t just pile up in already well-staffed urban centers. Hospitals that receive these slots must formally agree to increase their total number of full-time equivalent (FTE) residency positions by the exact number they receive.

Prioritizing Diversity and Capacity

Beyond geography, the bill focuses on hospitals that are already training residents beyond their current Medicare caps (meaning they’re committed to training) and those affiliated with new medical schools established since 2000. It also gives a specific nod to diversity by prioritizing HPSA sites affiliated with historically Black medical schools, such as Meharry Medical College or Howard University College of Medicine. This recognizes that physicians trained at these institutions often go on to serve diverse and underserved communities, addressing both capacity and equity.

However, the distribution process isn't entirely automatic. The Secretary has to determine that a hospital is “likely to actually fill those new positions within the first five years” before granting the slots. While this sounds like a common-sense check against hospitals hoarding spots they can’t use, it does give the administration some discretion in deciding who qualifies. If the metrics for this determination aren't crystal clear, it could lead to some administrative complexity or disputes over who gets the funding.

What’s the Long-Term Homework?

In addition to funding the new slots, the bill includes a mandate for the Comptroller General to conduct a study and report back to Congress within two years. This study needs to explore effective strategies for increasing diversity among health professionals, specifically looking at ways to attract more people from rural areas, lower-income backgrounds, and underrepresented communities into the healthcare field. This signals that Congress recognizes simply adding slots isn't enough; they also need to address who is entering the medical pipeline in the first place. For taxpayers, this bill means a significant, long-term investment in the healthcare workforce, funded through Medicare GME subsidies. While the cost isn't specified, 14,000 new funded residents represents a substantial commitment aimed at solving a critical shortage.