# CMS Finalizes Distribution of Federally Funded Medical Residency Positions

Medical groups urge further expansion to address persistent physician workforce shortages nationwide.

- **Source:** [MedPage Today](https://www.medpagetoday.com)
- **Published:** 2026-11-11
- **Topic:** [health](https://brifing.si/c/health)
- **Original article:** <https://www.medpagetoday.com/hospitalbasedmedicine/graduatemedicaleducation/123843>
- **On Brifing:** https://brifing.si/s/bc3db33c-a851-404a-8ba9-b03567e8bb8d

## Final Residency Slots Distributed

The Centers for Medicare and Medicaid Services has finalized the distribution of the last 200 residency positions from a 1,000-slot expansion authorized by Congress in 2021. This concludes a multi-year rollout aimed at increasing graduate medical education capacity, marking the first significant federal funding expansion for residency programs since the year 1997.

## Targeted Hospital Eligibility Criteria

To qualify for these federally funded positions, hospitals had to meet specific requirements. Eligible institutions included those in rural areas, facilities exceeding current graduate medical education caps, hospitals in states with new medical schools, or those serving regions officially designated as having a shortage of healthcare professionals to improve local patient access.

## Distribution Across Medical Specialties

Data from the Association of American Medical Colleges indicates that 99 hospitals across 31 states received these new residency slots. Approximately 42% of the total positions were allocated specifically to primary care and psychiatry residency programs, reflecting a strategic focus on addressing the most critical gaps in the current national physician workforce.

## Advocacy for Further Expansion

Despite the recent distribution, medical organizations like the AAMC and AAFP argue that current efforts remain insufficient. Leaders are calling for the passage of the Resident Physician Shortage Reduction Act of 2025, which seeks to gradually increase the total number of Medicare-supported graduate medical education positions to meet long-term patient care needs.

## Primary Care Access Challenges

The American Academy of Family Physicians emphasized that while the new slots are a positive step, the nation still lacks enough primary care doctors. They advocate for concrete policy changes that encourage physicians to practice and remain in underserved communities, ensuring that training investments translate into tangible improvements for patient health outcomes.

## Alternative Perspectives on Shortages

Dr. Bryan Carmody of Eastern Virginia Medical School offers a critical perspective, noting that hospitals have historically added residency positions without federal subsidies. He questions whether federal funding effectively addresses shortages, suggesting that the issue is primarily distributional rather than a lack of total physician supply within the current medical system.

## Systemic Incentive Structures

Critics argue that simply increasing the number of federally funded residency spots does not guarantee improved patient access. Because there are no requirements for where residents practice after training, they may choose sub-specialties in affluent areas rather than primary care in high-need regions, driven by existing financial incentives within the healthcare system.

## Future Policy Outlook

The debate highlights a tension between expanding federal support and reforming the underlying incentives that dictate physician career paths. Moving forward, policymakers must decide whether to continue increasing residency funding or shift focus toward structural changes that ensure newly trained doctors are effectively deployed to the communities that need them most.

## Sources covering this story

- https://www.medpagetoday.com/hospitalbasedmedicine/graduatemedicaleducation/123843 — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._
