Lack of funding prevents medical schools from training more new doctors

August 30, 2012

A major physician shortage looms, but medical schools and residency programs may not be able to train enough new doctors to address it because of funding rules, federal cuts, and revenue pressures that limit their expansion, Bloomberg reports.

According to the Association of American Medical Colleges (AAMC), the national physician shortage will reach about 62,900 physicians in 2015. Moreover, AAMC estimates that the shortage will exceed 100,000 physicians by 2025.

Federal funding cuts, rules for residencies limits programs

Currently, the cost of training a new resident is about $145,000 a year, and Medicare currently funds more than 75% of doctor residencies.

However, the number of students accepted into federally funded residency programs has been capped at 85,000 for the past 15 years. In addition, federal Medicare payments have been cut by the federal health care reform law and many states face deficits that prevent them from contributing training funds, according to AAMC Chief Policy Officer Atul Grover.

The restriction on federal funding for residency programs also impacts medical schools. According to the National Resident Matching Program. the number of residency applicants exceeds the number of available positions, preventing medical schools from expanding.

Revenue loss limit programs

Meanwhile, teaching hospitals pick up funding for 10,000 positions each year.

However, the hospitals use clinical fees to fund the positions. Given current revenue pressures, our belief is we’re not going to have the clinical revenue needed to invest in additional slots since, Grover says.

Hospitals look for new training funds

Teaching hospitals currently are supporting new bipartisan legislation that would add 3,000 residencies slots a year through 2017 using $9 billion in federal funds, according to Bloomberg.

However, some lawmakers, such as Georgia Congressman Tom Price (R), say private funding is the better solution. The problem is the structure of the program is no longer adequate, Price says, adding What we need I believe is fundamental reform of the funding stream.

As the system stands now, we’re going to have to find ways to see more patients with fewer physicians once the estimated influx of 30 million new patients kicks in by 2014, Grover says (Wayne, Bloomberg . 8/29).

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