S. 2439: Resident Physician Shortage Reduction Act of 2025

The Resident Physician Shortage Reduction Act of 2025 is designed to address the shortage of resident physicians in the United States by increasing the number of residency positions available. Here’s a breakdown of the main provisions of the bill:

Increase in Residency Positions

The bill proposes to allow for the distribution of an additional 2,000 residency positions per year from fiscal years 2027 through 2033. These positions will be distributed to qualifying hospitals that apply for them, helping to alleviate the shortage of trained physicians.

• Application Process: The Secretary of Health and Human Services will initiate seven rounds of applications for these additional residency positions, one for each fiscal year from 2027 to 2033.
• Distribution Criteria: Hospitals will be evaluated on their likelihood of filling the positions, with certain categories of hospitals receiving a minimum percentage of the additional positions.

Eligibility for Hospitals

To qualify for these additional residency positions, hospitals must:

• Demonstrate a commitment to increasing their residency programs.
• Be categorized in specific ways, such as being located in rural areas, having an existing shortfall in resident positions, or being designated as areas with health professional shortages.

Limitations on Residency Positions

There are limitations to ensure equitable distribution:

• No hospital can receive more than 75 additional residency positions during the period from 2027 to 2033, unless the Secretary estimates that more can be distributed based on demand.
• If any positions remain unallocated during the designated years, these will carry over to the following year until a total of at least 14,000 additional positions have been allocated by the end of the seven-year period.

Indirect Medical Education Payments

The bill also mentions changes to indirect medical education (IME) payments to hospitals related to the additional residency positions. This means adjustments will be made to ensure hospitals receive appropriate funding for the increased number of residents.

Study on Diversity in Healthcare

In addition to increasing residency positions, the bill mandates a study by the Comptroller General of the United States focused on strategies for increasing diversity in the healthcare professional workforce. This study will particularly look at:

• Increasing the number of health professionals from rural and lower-income backgrounds.
• Analyzing effective methods for achieving diversity within the health professional workforce.

A report with the findings and recommendations is to be submitted to Congress within two years of the bill’s enactment.

Conclusion

The Resident Physician Shortage Reduction Act of 2025 aims to bolster the healthcare workforce by augmenting residency positions and promoting diversity among health professionals. The provisions seek to improve access to medical training and enhance healthcare quality across various communities.

Relevant Companies

• HCA Healthcare (HCA): As one of the largest healthcare providers in the U.S., HCA could be impacted by the availability of more residency positions, potentially allowing them to train more future physicians within their networks.
• Universal Health Services, Inc. (UHS): With many hospitals and healthcare facilities, UHS may benefit from additional residency positions that could enhance its ability to recruit and train medical students.