Resident Physician Shortage Reduction Act of 2021
Bill: S.834 | Sponsor: Sen. Menendez, Robert (D-NJ)
Policy area: Health

Summary:
Resident Physician Shortage Reduction Act of 2021
This bill increases the number of residency positions eligible for graduate medical education payments under Medicare for qualifying hospitals, including hospitals in rural areas and health professional shortage areas.
Current law provides for an increase of up to 200 positions per fiscal year beginning in FY2023, with a total increase of 1,000 positions; each hospital may receive up to 25 additional positions. The bill provides for an additional increase of 2,000 positions per fiscal year from FY2023-FY2029; during this period, each hospital may receive up to 75 additional positions in total under the bill and current law.
The bill also requires the Government Accountability Office to report on strategies to increase the diversity of the health professional workforce, including with respect to representation from rural, low-income, and minority communities.

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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Resident Physician Shortage 
Reduction Act of 2021''.

SEC. 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 (9)'' and 
        inserting ``(9), and (10)'';
            (2) in paragraph (4)(H)(i), by striking ``and (9)'' and 
        inserting ``(9), and (10)'';
            (3) in paragraph (7)(E), by inserting ``paragraph (10),'' 
        after ``paragraph (9),''; and
            (4) by adding at the end the following new paragraph:
            ``(10) Distribution of additional residency positions.--
                    ``(A) Additional residency positions.--
                            ``(i) In general.--For each of fiscal years 
                        2023 through 2029 (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 2023 through 
                        2029.
                            ``(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 2023 through 
                                2029.
                                    ``(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 
                                2029.--If the aggregate number of 
                                positions distributed under this 
                                paragraph during the 7-year period of 
                                fiscal years 2023 through 2029 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.
                    ``(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 paragraph (9) over the period of 
                        fiscal years 2023 through 2029.
                            ``(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), and 
                        (8)(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)(9)''and inserting 
        ``(h)(9), and (h)(10)''.
            (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 (xii) the following new clause:
            ``(xiii) For discharges occurring on or after July 1, 2023, 
        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.''.

SEC. 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.
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