Qualifying rural hospitals may now apply for new residency positions created by Section 126 of the Consolidated Appropriations Act (CAA) of 2021 and Section 4122 of the CAA of 2023, which allow hospitals to expand their resident physician programs, particularly in rural and healthcare provider shortage areas.
Sec. 126 of the CAA created 1,000 new Medicare funded residency slots to train physicians. Hospitals that qualify for these slots include:
- Hospitals in rural areas (or treated as such legally).
- Hospitals training a number of residents that exceeds their current GME cap.
- Hospitals located in states with new medical schools and/or campuses.
- Hospitals in areas designated as health professional shortage areas (HPSAs).
Under Sec. 126, at least 10 percent of the slots must be awarded to hospitals in each of the four categories, and each hospital can receive a maximum of 25 resident cap slots. The new residency slots available through Section 126 can be applied for residencies of any specialty, based on their need.
Sec. 4122 of the CAA, 2023 created 200 new Medicare funded residency slots. A minimum of 100 slots must be psychiatry or psychiatry subspecialty residency programs. Each qualifying hospital will receive one slot before any hospital receives additional slots. CMS will then distribute remaining slots by HPSA score. The criterion for qualification is the same as that outlined above. Section 4122 requires that at least 10% of the cap slots go to hospitals in each of the four categories.
The Rural Residency Planning and Development Technical Assistance Center will also host a webinar on how to apply for Sec. 126 and 4122 residency positions Jan. 16 from 1 – 2 p.m. ET.
The application deadline for these programs is March 31, 2025. Hospitals must apply through the Medicare Electronic Application Request Information System. Members are encouraged to apply for slots under Sec. 126 and residency spots under Sec. 4122.
Members with questions may contact Lauren LaPine at the MHA.