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Physicians for Underserved Areas Act
3/1/2025, 4:53 AM
Summary of Bill HR 870
The bill addresses the issue of residency slots, which are positions for medical school graduates to receive specialized training in hospitals. When a hospital closes, these residency slots are at risk of being lost, which can have negative implications for the training of future doctors and the availability of healthcare services in underserved areas.
The proposed amendments in the bill seek to ensure that when a hospital closes, the residency slots are redistributed to other hospitals in a fair and efficient manner. This will help to maintain the continuity of medical training for residents and ensure that communities continue to have access to quality healthcare services. Overall, Bill 119 HR 870 aims to improve the redistribution of residency slots under the Medicare program in order to address the challenges that arise when hospitals close. By ensuring that these slots are reallocated in a timely and equitable manner, the bill seeks to support the training of future doctors and the delivery of healthcare services to all communities.
Congressional Summary of HR 870
Physicians for Underserved Areas Act
This bill modifies how a hospital's residency positions are redistributed after it closes for purposes of graduate medical education payments under Medicare.
Under current law, if a hospital with an approved medical residency program closes, the Centers for Medicare & Medicaid Services (CMS) must redistribute the hospital's residency positions to other hospitals in the following order: (1) hospitals in the same core-based statistical area as the closed hospital, (2) hospitals in the same state as the closed hospital, (3) hospitals in the same region of the country as the closed hospital, and (4) other remaining hospitals. In order to receive the additional positions, hospitals must demonstrate a likelihood of filling the positions within three years.
The bill removes the requirement that the CMS prioritize hospitals in the same region of the country as the closed hospital. It also requires hospitals to demonstrate a likelihood of (1) starting to use the positions within two years, and (2) filling the positions within five years.

