CMS has awarded 400 additional Medicare-funded residency positions to 135 hospitals across 37 states, an effort that aims to further address the nation’s growing physician shortage.
About 62% of the new slots will support primary care and psychiatry programs, CMS said in a news release shared with Becker’s. The distribution marks the fourth round of graduate medical education positions funded under the Consolidated Appropriations Act of 2021 and the first under the 2023 version. With this round, CMS has allocated more than half of the 1,200 positions authorized by Congress.
Residency programs are a critical part of the physician pipeline, but Medicare covers only part of their cost, leaving hospitals to fund the rest, especially for positions above their Medicare cap. The Association of American Medical Colleges projects the U.S. could face a shortage of up to 86,000 physicians by 2036, driven by an aging population and workforce.
In a Dec. 19 statement, the AAMC applauded CMS’ latest distribution, calling it a “meaningful step forward” in addressing the physician workforce shortage.
“These additional residency positions demonstrate bipartisan support for continued investment in physician training and are instrumental to increasing access to care for patients by allowing more residents to serve communities nationwide,” AAMC President and CEO David Skorton, MD, said in the statement.
The organization noted that the Medicare-supported residency cap has been in place since the Balanced Budget Act of 1997, leaving academic health systems to absorb significant costs to train residents beyond federally supported levels.
The AAMC said the distribution marks the fourth round of positions funded under the 2021 law and the first and only round authorized by the Consolidated Appropriations Act of 2023.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.