New Bill Proposes 14,000 Medicare Residency Slots to Address Physician Shortage

U.S. Representatives Terri Sewell (D-Alabama) and Brian Fitzpatrick (R-Pennsylvania) introduced the Resident Physician Shortage Reduction Act of 2025 to address the critical shortage of physicians nationwide. The bipartisan legislation proposes adding 14,000 new Medicare-supported medical residency positions over seven years, targeting improved healthcare access especially in rural and underserved communities.

The bill responds to projections by the Association of American Medical Colleges that the U.S. may face a deficit of up to 86,000 physicians by 2036 due to population growth, aging demographics, and retirements within the current physician workforce. Expanding residency positions is intended to increase the number of trained physicians to meet escalating patient care demands.

A key provision of the legislation is permanent codification of the Rural Residency Planning and Development Program, which supports hospitals in underserved areas in establishing residency training programs. Alabama, for example, hosts 15 teaching hospitals with 1,049 residents, of which 895 positions are Medicare-supported.

This legislation builds on previous federal efforts that added 1,200 residency positions in 2021 and 2023. Medical organizations such as the Association of American Medical Colleges have publicly supported the act, emphasizing its potential to strengthen physician training across urban and rural settings.

By providing a phased, multi-year expansion of graduate medical education funding, the Resident Physician Shortage Reduction Act aims to alleviate physician shortages that impede timely patient care and strain healthcare infrastructure, particularly in rural areas. It offers a strategic response to a significant healthcare workforce challenge facing Medicare payers, hospitals, and policymakers.

The bill's implications are especially relevant for healthcare providers, payers, and regulatory bodies involved in Medicare funding and medical education. Its passage could enhance accessibility and quality of care across diverse geographic regions, while addressing workforce sustainability in American healthcare systems.