Resident Physician Shortage Reduction Act of 2025

Key Provisions

• Creates 14,000 new Medicare-funded medical residency positions over seven years (the government's budget years 2026-2032), with 2,000 available each year.
• Sets aside one-third of new positions for hospitals already training more residents than their current Medicare limit allows, if they meet certain primary care and general surgery training requirements.
• Requires at least 10% of the positions not reserved for hospitals already over their limit to be distributed to each of the following categories: hospitals in rural areas, hospitals serving doctor shortage areas, and hospitals in states with new medical schools.
• Limits each hospital to a maximum of 75 new residency positions over the seven-year period, though this limit could be increased if positions are not fully used.
• Changes how Medicare calculates additional payments for hospitals that train many residents, specifically for these new positions, starting July 1, 2027.