H.R. 3890: Resident Physician Shortage Reduction Act of 2025

This bill, known as the Resident Physician Shortage Reduction Act of 2025, aims to address the shortage of resident physicians in the United States by increasing the number of residency positions available at qualifying hospitals. Here’s a breakdown of the key components of the legislation:

Distribution of Additional Residency Positions

The bill calls for the addition of residency positions over a seven-year period from fiscal years 2026 through 2032. Specifically:

• The Secretary of Health and Human Services is tasked with increasing the resident limit for qualifying hospitals that submit timely applications. These increases can be implemented for portions of cost reporting periods starting on or after July 1 of the fiscal year of the increase.
• In total, up to 2,000 additional residency positions will be distributed each year until 2032. The Secretary will determine how many positions to allocate based on demand and specific hospital criteria.
• One-third of these positions will be specifically set aside for hospitals that are already operating over their resident limit, provided they meet certain eligibility criteria.

Eligibility Criteria for Hospitals

To qualify for these additional residency positions, hospitals must:

• Be operating over their limit and demonstrate a commitment to training residents in primary care and general surgery.
• Continue to meet training requirements over the designated period.

Application Process

The bill outlines a structured application process whereby the Secretary will run several rounds of applications annually. Hospitals will need to apply to receive the increased residency positions, and they will be notified of their allocation by January 1 of the fiscal year the increase takes effect.

Funding and Distribution Mechanism

The legislation also includes provisions for:

• Indicating how unused residency positions from one fiscal year can carry over to the next, ensuring that there is continued progress toward the goal of distributing at least 14,000 additional residency positions by the end of the 7-year period.
• Ensuring that at least 10% of additional positions are earmarked for hospitals in rural areas and those serving health professional shortage areas.
• Prioritizing those hospitals affiliated with historically Black medical schools and those serving underrepresented communities.

Study and Report on Workforce Diversity

The bill mandates a study to evaluate strategies for increasing diversity in the health professional workforce. This includes:

• Assessing methods to enhance the number of health professionals from rural, lower-income, and underrepresented minority communities.
• Requiring the Comptroller General to report findings and recommendations to Congress within two years of the bill’s enactment.

Rural Residency Programs

Additionally, the bill establishes a program for rural residency planning and development. This involves:

• Aiming to create new residency programs in rural areas, encouraging the training of residents who are likely to practice in those communities.
• Providing grants specifically for the development of these rural residency programs and technical assistance for potential applicants.

Authorization of Funding

The bill includes provisions for the authorization of funding of $12.7 million yearly from 2026 through 2030 to support the initiatives outlined in the legislation.

Relevant Companies

• HCA Healthcare (HCA) - Increased residency positions could impact hospitals owned or operated by HCA, potentially increasing their capacity to train residents.
• Universal Health Services (UHS) - Similar to HCA, UHS operates many hospitals which may benefit from an expanded residency program.
• Lifepoint Health (LPNT) - As a provider of healthcare facilities, Lifepoint could see implications for their residency programs as well.