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CMS awards new Medicare-funded residency slots to hospitals in underserved communities

About three-quarters of the new positions will be for primary care and mental health specialties, CMS says.

Jeff Lagasse, Editor

Photo: Morsa Images/Getty Images

The Centers for Medicare and Medicaid Services has awarded the first 200 of 1,000 Medicare-funded physician residency slots meant to support the healthcare workforce and fund additional positions in hospitals serving underserved communities. 

About three-quarters of the new positions will be for primary care and mental health specialties, CMS said.

"These graduate medical education residency slot awards will help address access to care challenges and workforce shortages in the highest need areas," said CMS Administrator Chiquita Brooks-LaSure. "The majority of the positions are for primary care and mental health specialists, who are the foundation of our healthcare system. I encourage potential applicants to apply to our next application period, which opens in just a few weeks."

WHAT'S THE IMPACT?

The Fiscal Year 2022 Inpatient Prospective Payment System (IPPS) final rule established policies to implement 1,000 new Medicare-funded physician residency slots to qualifying hospitals authorized by the Consolidated Appropriations Act of 2021, phasing in 200 slots per year over five years.

In allocating these new residency slots, CMS prioritized hospitals with training programs in geographic areas demonstrating the greatest need for additional providers, as determined by Health Professional Shortage Areas. The first round of 200 residency positions are to 100 teaching hospitals across 30 states, Washington D.C. and Puerto Rico, and they will be effective July 1.

Of these direct graduate medical education slots, 125 of the residency slots are being allocated for primary care (including obstetrics/gynecology), and 20 slots are being allocated for psychiatry.

CMS framed the move as representing progress toward improving access to critical services – including those necessary to address the mental health crisis – in rural and underserved communities, as outlined in the Department of Health and Human Services' Initiative to Strengthen Primary Care and the CMS Behavioral Health Strategy.

The application period for the second round of 200 residency positions will open later this month and close on March 31.

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 an increase training in rural areas and increased graduate medical education payments to hospitals meeting certain criteria.

ON THE RECORD

"Prioritizing these awards to areas that need the most support will bolster the workforce while also arming new providers with a unique understanding of the specific needs of these communities," said Dr. Meena Seshamani, deputy administrator and director for CMS' Center for Medicare. "This is critical in advancing our goals of providing high-quality care to all people."
 

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com