CMS awards 400 residency slots to combat physician shortage

Modern Healthcare – Tuesday, December 23, 2025
By Hayley DeSilva

The Centers for Medicare and Medicaid Services has distributed 400 additional Medicare-supported residency positions to hospitals to curb an ongoing shortage of physicians.

The additions are part of the requirements of the Consolidated Appropriations Act, which was enacted in 2021 and renewed in 2023.

The act calls for Medicare funding to be used to help hospitals, particularly teaching hospitals, cover costs for physician residency programs, resident salaries, among other things, to attract more physicians into the workforce. It requires that 1,200 supported slots be offered to hospitals by the end of 2026.

CMS said an estimated 62% of the newly awarded positions will go to primary care and psychiatry residency programs.

There 400 slots were spread among 95 hospitals. Between the most recent round and an earlier round, 135 hospitals have been awarded positions across 37 states.

The final round is set for next year, according to the Association of American Medical Colleges. The association said it was pleased with the latest additions, but further investment is needed.

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