Commonwealth Policy Papers


The Fiscal Year (FY) 2022 Inpatient Prospective Payment System (IPPS) final rule designated the Centers for Medicare & Medicaid to implement 1,000 new Medicare-funded physician residency slots to qualifying hospitals authorized by the Consolidated Appropriations Act (CAA) of 2021, phasing in 200 slots per year over five years.However, in its first round of allocation of 200 slots in 2023, only 5 rural hospitals in the country received slots, despite Section 126 of the CAA.

In this brief, we discuss potential solutions to address this allocation shortfall.