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CMS is adding 1,000 new physician residency slots over 10 years to address labor shortage 

Priority will be given to hospitals with training programs in areas demonstrating the greatest need for providers.

Susan Morse, Executive Editor

Photo: Katleho Seisa/Getty Images

The Centers for Medicare and Medicaid Services is distributing 1,000 new medical residency slots in hospitals serving rural and underserved communities.

The 2022 Inpatient Prospective Payment System final rule with comment period distributes 1,000 new Medicare-funded physician residency slots to qualifying hospitals, phasing in 200 slots per year over five years. 

CMS said it would prioritize hospitals with training programs in areas demonstrating the greatest need for providers, as determined by Health Professional Shortage Areas. The first round of 200 residency slots will be announced by Jan. 31, 2023, and will become effective July 1, 2023.

Once fully phased in, the additional funding will total approximately $1.8 billion over 10 years. 

WHY THIS MATTERS

The additional residency program positions are to address hospital labor shortages, particularly for hospitals serving rural and underserved communities.

Doctors are most likely to practice in the areas where they do their residencies, said Director of the Center for Medicare, Dr. Meena Seshamani. 

"Having additional residents train in the very areas that need the most support can, not only bolster the numbers of providers in these underserved areas, but also train them with a unique understanding of the specific needs of these communities," Seshamani said in a statement.
 
THE LARGER TREND

This is the largest increase in Medicare-funded residency slots in more than 25 years, CMS said. Other sections of the Consolidated Appropriations Act 2021 being implemented promote increasing training in rural areas and increasing graduate medical education payments to hospitals meeting certain criteria.
 
ON THE RECORD

"CMS recognizes the importance of encouraging more health professionals to work in rural and underserved areas, and the need to train and retain physicians to improve access to healthcare in these communities," said CMS Administrator Chiquita Brooks-LaSure. 

Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com