S. 1302Senate118th Congress (2023-2025)In Committee

Resident Physician Shortage Reduction Act of 2023

Introduced April 26, 2023

AI-Generated Summary

Updated January 20, 2026 at 6:41 AM UTC

The Resident Physician Shortage Reduction Act of 2023 amends the Social Security Act to create a program that adds up to 2,000 new residency positions each fiscal year from 2025 through 2031, aiming to ease the nationwide shortage of resident physicians. The Secretary of Health and Human Services will allocate these positions to qualifying hospitals through a series of application rounds, with special attention to rural hospitals, those serving health professional shortage areas, and hospitals linked to new or expanding medical schools. The bill also requires the Comptroller General to study ways to increase diversity in the health‑professional workforce and report findings within two years.

Key Provisions

  • Adds a new paragraph (11) to the resident limit rules, allowing the Secretary to increase the resident limit for qualifying hospitals by up to 2,000 positions per year for fiscal years 2025‑2031, targeting a total of 14,000 positions.
  • Establishes seven annual rounds of applications where hospitals submit timely requests to receive additional residency slots; notifications must be sent by Jan 31 of the fiscal year.
  • Requires at least 10% of the new positions each year to go to hospitals that are rural, have a resident level below their limit, are linked to new or expanding medical schools, or serve health professional shortage areas.
  • Limits any single hospital to receiving no more than 75 additional full‑time‑equivalent residency positions over the 2025‑2031 period, unless the Secretary raises the cap based on demand.
  • Mandates that hospitals must agree to add the same number of residency slots to their training programs as they receive through the program.
  • Orders the Comptroller General to conduct a study on strategies to increase diversity in the health‑professional workforce and to report recommendations to Congress within two years.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

April 26, 2023

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SenateIntro Referral

Introduced in Senate

April 26, 2023

SenateIntro Referral

Read twice and referred to the Committee on Finance.

April 26, 2023

Floor Debate

3 members

What members said about S. 1302 on the floor

1 Republican1 Democrat1 Independent
Ron Wyden
Sen. Ron WydenD-OR · Jul 27, 2023

Mr. President, before I make a unanimous request on this important bipartisan, bicameral bill, I wish to talk for a moment about why it is so critical that the Senate pass this urgently needed…

Bernard Sanders
Sen. Bernard SandersI-VT · Jul 27, 2023

Reserving the right to object Let me begin by thanking Chairman Wyden for his leadership on the need to fundamentally reform our Nation's organ transplant program. I share his concerns. A 2020…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Jul 27, 2023

Mr. President, the Securing the U.S. Organ Procurement and Transplantation Network Act is an opportunity for Congress to make history, an opportunity to change the lives of the more than 100,000…

Bill Text

Latest available legislative text

Reading Mode
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Introduced in SenateIssued April 26, 2023

II

118th CONGRESS

1st Session

S. 1302

IN THE SENATE OF THE UNITED STATES

April 26, 2023

Mr. Menendez (for himself, Mr. Boozman, Mr. Schumer, and Ms. Collins) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XVIII of the Social Security Act to provide for the distribution of additional residency positions, and for other purposes.

1.

Short title

This Act may be cited as the Resident Physician Shortage Reduction Act of 2023.

2.

Distribution of additional residency positions

(a)

In general

Section 1886(h) of the Social Security Act (42 U.S.C. 1395ww(h)) is amended—

(1)

in paragraph (4)(F)(i), by striking and (10) and inserting (10), and (11);

(2)

in paragraph (4)(H)(i), by striking and (10) and inserting (10), and (11);

(3)

in paragraph (7)(E), by inserting paragraph (11), after paragraph (10),; and

(4)

by adding at the end the following new paragraph:

(11)

Distribution of additional residency positions

(A)

Additional residency positions

(i)

In general

For each of fiscal years 2025 through 2031 (and succeeding fiscal years if the Secretary determines that there are additional residency positions available to distribute under clause (iii)(II)), the Secretary shall increase the otherwise applicable resident limit for each qualifying hospital (as defined in subparagraph (G)) that submits a timely application under this subparagraph by such number as the Secretary may approve for portions of cost reporting periods occurring on or after July 1 of the fiscal year of the increase. Except as provided in clause (iii), the aggregate number of increases in the otherwise applicable resident limit under this subparagraph shall be equal to 2,000 in each of fiscal years 2025 through 2031.

(ii)

Process for distributing positions

(I)

Rounds of applications

The Secretary shall initiate 7 separate rounds of applications for an increase under clause (i), 1 round with respect to each of fiscal years 2025 through 2031.

(II)

Number available

In each of such rounds, the aggregate number of positions available for distribution in the fiscal year as a result of an increase in the otherwise applicable resident limit (as described in clause (i)) shall be distributed, plus any additional positions available under clause (iii).

(III)

Timing

The Secretary shall notify hospitals of the number of positions distributed to the hospital under this paragraph as result of an increase in the otherwise applicable resident limit by January 31 of the fiscal year of the increase. Such increase shall be effective for portions of cost reporting periods beginning on or after July 1 of that fiscal year.

(iii)

Positions not distributed during the fiscal year

(I)

In general

If the number of resident full-time equivalent positions distributed under this paragraph in a fiscal year is less than the aggregate number of positions available for distribution in the fiscal year (as described in clause (i), including after application of this subclause), the difference between such number distributed and such number available for distribution shall be added to the aggregate number of positions available for distribution in the following fiscal year.

(II)

Exception if positions not distributed by end of fiscal year 2031

If the aggregate number of positions distributed under this paragraph during the 7-year period of fiscal years 2025 through 2031 is less than 14,000, the Secretary shall, in accordance with the considerations described in subparagraph (B)(i) and the priority described in subparagraph (B)(ii), conduct an application and distribution process in each subsequent fiscal year until such time as the aggregate amount of positions distributed under this paragraph is equal to 14,000.

(B)

Distribution to certain hospitals

(i)

Consideration in distribution

In determining for which hospitals the increase in the otherwise applicable resident limit is provided under subparagraph (A), the Secretary shall take into account the demonstrated likelihood of the hospital filling the positions made available under this paragraph within the first 5 cost reporting periods beginning after the date the increase would be effective, as determined by the Secretary.

(ii)

Minimum distribution for certain categories of hospitals

With respect to the aggregate number of such positions available for distribution under this paragraph, the Secretary shall distribute not less than 10 percent of such aggregate number to each of the following categories of hospitals:

(I)

Hospitals that are located in a rural area (as defined in subsection (d)(2)(D)) or are treated as being located in a rural area pursuant to subsection (d)(8)(E).

(II)

Hospitals in which the reference resident level of the hospital (as specified in subparagraph (G)(iii)) is greater than the otherwise applicable resident limit.

(III)

Hospitals in States with—

(aa)

new medical schools that received Candidate School status from the Liaison Committee on Medical Education or that received Pre-Accreditation status from the American Osteopathic Association Commission on Osteopathic College Accreditation on or after January 1, 2000, and that have achieved or continue to progress toward Full Accreditation status (as such term is defined by the Liaison Committee on Medical Education) or toward Accreditation status (as such term is defined by the American Osteopathic Association Commission on Osteopathic College Accreditation); or

(bb)

additional locations and branch campuses established on or after January 1, 2000, by medical schools with Full Accreditation status (as such term is defined by the Liaison Committee on Medical Education) or Accreditation status (as such term is defined by the American Osteopathic Association Commission on Osteopathic College Accreditation).

(IV)

Hospitals that serve areas designated as health professional shortage areas under section 332(a)(1)(A) of the Public Health Service Act, as determined by the Secretary.

(iii)

Special rule

In distributing positions under clause (ii), the Secretary shall not prioritize hospitals in multiple categories over hospitals in an individual category or based on section 332 of the Public Health Service Act.

(C)

Prohibition on distribution to hospitals without an increase agreement

No increase in the otherwise applicable resident limit of a hospital may be made under this paragraph unless such hospital agrees to increase the total number of full-time equivalent residency positions under the approved medical residency training program of such hospital by the number of such positions made available by such increase under this paragraph.

(D)

Limitation

(i)

In general

Except as provided in clause (ii), a hospital may not receive more than 75 full-time equivalent additional residency positions in the aggregate under this paragraph and paragraphs (9) and (10) over the period of fiscal years 2025 through 2031.

(ii)

Increase in number of additional positions a hospital may receive

The Secretary shall increase the aggregate number of full-time equivalent additional residency positions a hospital may receive under this paragraph over such period if the Secretary estimates that the number of positions available for distribution under subparagraph (A) exceeds the number of applications approved under such subparagraph over such period.

(E)

Application of per resident amounts for primary care and nonprimary care

With respect to additional residency positions in a hospital attributable to the increase provided under this paragraph, the approved FTE per resident amounts are deemed to be equal to the hospital per resident amounts for primary care and nonprimary care computed under paragraph (2)(D) for that hospital.

(F)

Permitting facilities to apply aggregation rules

The Secretary shall permit hospitals receiving additional residency positions attributable to the increase provided under this paragraph to, beginning in the fifth year after the effective date of such increase, apply such positions to the limitation amount under paragraph (4)(F) that may be aggregated pursuant to paragraph (4)(H) among members of the same affiliated group.

(G)

Definitions

In this paragraph:

(i)

Otherwise applicable resident limit

The term otherwise applicable resident limit means, with respect to a hospital, the limit otherwise applicable under subparagraphs (F)(i) and (H) of paragraph (4) on the resident level for the hospital determined without regard to this paragraph but taking into account paragraphs (7)(A), (7)(B), (8)(A), (8)(B), (9)(A), (9)(B), (10)(A), and (10)(B).

(ii)

Qualifying hospital

The term qualifying hospital means a hospital described in any of subclauses (I) through (IV) of subparagraph (B)(ii).

(iii)

Reference resident level

The term reference resident level means, with respect to a hospital, the resident level for the most recent cost reporting period of the hospital ending on or before the date of enactment of this paragraph, for which a cost report has been settled (or, if not, submitted (subject to audit)), as determined by the Secretary.

(iv)

Resident level

The term resident level has the meaning given such term in paragraph (7)(C)(i).

.

(b)

IME

(1)

In general

Section 1886(d)(5)(B)(v) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(v)), in the third sentence, is amended by striking and (h)(10) and inserting (h)(10), and (h)(11).

(2)

Conforming provision

Section 1886(d)(5)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(B)) is amended by adding after clause (xiii) the following new clause:

(ix)

For discharges occurring on or after July 1, 2025, insofar as an additional payment amount under this subparagraph is attributable to resident positions distributed to a hospital under subsection (h)(10), the indirect teaching adjustment factor shall be computed in the same manner as provided under clause (ii) with respect to such resident positions.

.

3.

Study and report on strategies for increasing diversity

(a)

Study

The Comptroller General of the United States (in this section referred to as the Comptroller General) shall conduct a study on strategies for increasing the diversity of the health professional workforce. Such study shall include an analysis of strategies for increasing the number of health professionals from rural, lower income, and underrepresented minority communities, including which strategies are most effective for achieving such goal.

(b)

Report

Not later than 2 years after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report on the study conducted under subsection (a), together with recommendations for such legislation and administrative action as the Comptroller General determines appropriate.