Some programs offer outright financial incentives with no specific purpose attached. This can be due to the location of the residency and the limited amenities in the surrounding area. Moonlighting cannot take place until after the first year of residency training, when physicians complete the final requirements for licensure. Residents who moonlight can substantially increase their annual income. Moonlighting income is fully taxable and may affect a resident's eligibility for an Economic Hardship Deferment.
Some programs forbid moonlighting.
These programs state this clearly in their contracts and will release any house officer found to be moonlighting. Other programs allow limited moonlighting with the prior approval of the residency program director, the department chairperson or the graduate medical education dean. The rationale for limiting moonlighting is based on quality of patient care provided. In some cases, relocation costs are paid as part of an incentive package to attract medical school graduates to a residency, but this is not the usual scenario. However, you can feel comfortable asking about this at the time of your interview, particularly if you will incur a large expense moving to the residency.