Resident Physician Shortage Reduction Act of 2025
- Bill Number
- H.R. 3890
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2025-06-10: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-03-31T15:56:23Z
AI-Generated Summary
Purpose
The Resident Physician Shortage Reduction Act of 2025 aims to address shortages in the U.S. physician workforce, particularly in primary care, rural areas, and underserved communities, by expanding the number of funded medical residency positions. It seeks to increase the supply of trained physicians, promote diversity in the health workforce, and support rural training programs through targeted funding and incentives.
Key Provisions
- Additional Residency Positions (Section 2):
- Authorizes the Secretary of Health and Human Services (HHS) to distribute up to 2,000 additional full-time equivalent (FTE) residency positions annually from fiscal year (FY) 2026 through 2032, totaling 14,000 positions over seven years (with potential extensions if not fully distributed).
- One-third of positions reserved for hospitals already operating above their current resident cap (reference resident level), provided they train at least 25% of residents in primary care or general surgery and maintain this for five years; failure to comply allows reduction of the cap.
- Remaining positions distributed based on factors like the hospital's ability to fill positions within five years, with minimum allocations (at least 10% each) to:
- Rural hospitals (including those in rural areas, high rural-urban commuting zones, sole community hospitals, or those near such hospitals; after FY 2031, includes accredited rural training tracks).
- Hospitals over their resident cap.
- Hospitals in states with new or expanding medical schools since 2000.
- Hospitals serving health professional shortage areas (HPSAs), with priority to those affiliated with historically Black medical schools (HBCUs) or certain other institutions.
- Hospitals must agree to actually increase their residency slots to receive positions; no hospital can receive more than 75 additional positions across related programs from FY 2026-2032 (with possible increases if demand is low).
- Positions apply to Medicare payments for graduate medical education (GME) and indirect medical education (IME), effective for cost reporting periods starting July 1 of the relevant year.
- Undistributed positions carry over to the next year; if fewer than 14,000 are distributed by FY 2032, distribution continues until the total is reached.
- Study on Workforce Diversity (Section 3):
- Requires the Government Accountability Office (GAO) to study strategies for increasing diversity among health professionals, focusing on rural, low-income, and underrepresented minority communities.
- GAO must report findings and recommendations to Congress within two years of enactment.
- Rural Residency Programs (Section 4):
- Establishes a grant program under the Public Health Service Act for eligible entities (e.g., nonprofits, tribes, rural hospitals, medical schools, HBCUs) to plan and develop new rural residency programs or expand existing rural tracks.
- Focuses on training in primary care, high-need specialties (e.g., family medicine, psychiatry, general surgery), maternal health, or other Secretary-approved areas; programs must train residents in rural areas for over 50% of their time and aim to produce rural-practicing physicians.
- Includes a technical assistance grant program to support applicants and awardees.
- Authorizes $12.7 million annually for FY 2026-2030, with funds available until spent; grants can be fully funded upfront and last 3-4 years (extendable).
Significant Changes to Existing Law
- Amends Section 1886(h) of the Social Security Act (Medicare GME provisions), which has capped residency positions since 1997 (with prior temporary increases via paragraphs 7-10); adds a new paragraph (11) to permanently expand slots without altering prior caps.
- Updates IME payment calculations under Section 1886(d)(5)(B) to include new positions starting July 1, 2027, ensuring hospitals receive adjusted payments for teaching costs.
- Adds Section 330A-3 to the Public Health Service Act, creating new grant programs for rural residencies, building on existing rural health initiatives but with dedicated funding and specific rural training requirements.
- Introduces carryover for undistributed positions and post-2032 extensions, differing from prior one-time or limited expansions.
Potential Impacts
- Government Agencies: HHS and the Centers for Medicare & Medicaid Services (CMS) will administer distributions, applications, and payments, increasing administrative workload and Medicare expenditures (estimated at billions over time for GME/IME). GAO will conduct the diversity study.
- Citizens: Could improve access to primary and specialty care in rural and shortage areas, reducing physician shortages (currently ~100,000 by 2034 per projections) and enhancing health outcomes for underserved populations, including minorities and low-income groups.
- International Relations: Minimal direct impact, though increased U.S. physician training might indirectly affect global health workforce migration patterns.
- Overall, aims to boost physician supply by ~14,000 over seven years, potentially alleviating healthcare disparities without broad cost controls.
Main Stakeholders Affected
- Hospitals and Medical Education Institutions: Teaching hospitals (especially rural, urban HPSA-serving, and those affiliated with new/HBCU medical schools) gain funding opportunities but face new compliance requirements (e.g., primary care training thresholds).
- Physicians and Residents: Benefits future doctors through more funded training slots, particularly in rural/primary care paths, potentially increasing workforce diversity.
- Underserved Communities: Rural residents, low-income groups, and racial/ethnic minorities stand to gain from targeted training and diversity efforts, improving local care access.
- Federal Government and Taxpayers: Bears costs via Medicare and new appropriations, with long-term savings possible from better healthcare delivery.
- Tribal and Community Organizations: Eligible for grants, supporting Indigenous and faith-based rural health initiatives.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens Medicare's role in workforce development under existing GME authority; includes enforcement mechanisms (e.g., cap reductions for non-compliance) but relies on Secretary discretion for distributions, potentially inviting administrative challenges or lawsuits over fairness in allocations.
- Constitutional: No major issues; aligns with Congress's spending power under Article I and general welfare clause, without infringing on states' rights (though states with new medical schools benefit indirectly).
- Political: Bipartisan introduction (by Reps. Sewell and Fitzpatrick) signals broad support for addressing physician shortages; emphasizes equity (e.g., HBCU priorities, rural focus) amid ongoing debates on healthcare costs and access, but could face opposition over added federal spending without offsets. The diversity study may inform future equity-focused policies.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Sewell, Terri A. [D-AL-7]
Cosponsors (1)
Rep. Fitzpatrick, Brian K. [R-PA-1]
Recent Actions
- 2025-06-10: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-10: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-10: Introduced in House
- 2025-06-10: Introduced in House
Bill Versions
- Resident Physician Shortage Reduction Act of 2025 — issued 2025-06-10 — PDF (22 pages)