S2439119th CongressWALLET

Resident Physician Shortage Reduction Act of 2025

Sponsored By: Senator John Boozman

Introduced

Summary

Expands residency positions to reduce physician shortages. The bill would create a new, discrete pool of residency slots with about 2,000 positions available each year from fiscal year 2027 through 2033 and a backstop to reach at least 14,000 total slots.

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  • Hospitals: Qualifying hospitals would be allowed to raise their resident limits and could receive up to 75 additional full-time equivalent residency positions over 2027–2033.
  • Rural and underserved hospitals: At least 10 percent of the positions would be reserved for categories such as rural hospitals and hospitals serving Health Professional Shortage Areas, with priority for hospitals affiliated with historically Black medical schools.
  • Residents and training funding: Hospitals must add the new slots to approved residency programs. Medicare would treat payment amounts for these positions like the hospital’s existing per-resident rates and indirect medical education calculations would apply for discharges on or after July 1, 2027.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

How Medicare pays for new slots

This bill would treat per‑resident payment amounts for the new slots as equal to each hospital's existing per‑resident amounts for primary and nonprimary care. For discharges on or after July 1, 2027, any IME payment tied to these slots would be computed the same way as current IME rules.

Minimum slots for priority hospitals

This bill would require at least 10% of the available slots each round go to each of four hospital groups. The groups include rural and sole community hospitals, hospitals whose reference resident level is above their limit, hospitals tied to new state medical schools or branch campuses, and hospitals serving Health Professional Shortage Areas (HPSAs). When awarding HPSA slots, priority would go to hospitals affiliated with the named historically Black medical schools.

More residency slots for hospitals

This bill would add 2,000 extra residency slots each fiscal year from FY2027 through FY2033. HHS would run one application round each year and notify hospitals by January 31. New slots would apply to cost periods starting on or after July 1 of that fiscal year. Unused slots in a year would roll over to the next year. If fewer than 14,000 slots are distributed by the end of FY2033, HHS would keep running rounds until 14,000 are given. A hospital could get up to 75 extra slots total unless HHS raises that cap.

Hospitals must add and later count slots

This bill would require a hospital to agree to add the same number of full‑time resident positions before it can get a higher resident limit. Beginning in the fifth year after the increase takes effect, hospitals could count these new positions when combining limits across affiliated hospitals.

Sponsors & CoSponsors

Sponsor

John Boozman

AR • R

Cosponsors

  • Raphael Warnock

    GA • D

    Sponsored 7/24/2025

  • Susan Collins

    ME • R

    Sponsored 7/24/2025

  • Charles Schumer

    NY • D

    Sponsored 7/24/2025

  • Kirsten Gillibrand

    NY • D

    Sponsored 7/24/2025

  • Jacky Rosen

    NV • D

    Sponsored 7/24/2025

  • Amy Klobuchar

    MN • D

    Sponsored 7/24/2025

  • Angus King

    ME • I

    Sponsored 7/24/2025

  • Ruben Gallego

    AZ • D

    Sponsored 7/24/2025

  • Peter Welch

    VT • D

    Sponsored 7/24/2025

  • Elissa Slotkin

    MI • D

    Sponsored 7/24/2025

  • Richard Durbin

    IL • D

    Sponsored 7/24/2025

  • Mark Kelly

    AZ • D

    Sponsored 7/28/2025

  • Cory Booker

    NJ • D

    Sponsored 7/28/2025

  • Tommy Tuberville

    AL • R

    Sponsored 9/30/2025

Roll Call Votes

No roll call votes available for this bill.

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