Advocacy Alert

Urge Your Lawmakers to Support Essential Health System Designation

Applications Open for Third Round of Additional Residency Slots

Faridat Animashaun
January 23, 2024

The Centers for Medicare & Medicaid Services (CMS) announced Jan. 9 that the next round of applications for additional residency slots from Section 126 is open through March 31.

The Section 126 awards are a result of the fiscal year 2022 Hospital Inpatient Prospective Payment System final rule, which established policies to implement 1,000 new Medicare-funded physician residency slots to qualifying hospitals authorized by the Consolidated Appropriations Act, 2021, phasing in 200 slots per year over five years.

The four categories of qualifying hospitals include:

  • Rural hospitals or hospitals treated as rural.
  • Hospitals training residents in excess of their GME cap.
  • Hospitals in states with new medical schools or branch campuses.
  • Hospitals that serve geographic Health Professional Shortage Areas.

CMS awarded additional residency positions to 27 essential hospitals in the first round of awards and 35 essential hospitals in the second round of awards.

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.

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