Advancing the Next Generation of America’s Health Care Workforce

Health Care Costs and Drug PricingHouse Ways and Means Subcommittee on Health · 2026-02-24 · 119th Congress
The House Ways and Means Subcommittee on Health held this hearing to examine the nation's growing physician shortage — projected at 187,000 by 2037 — and to explore how graduate medical education (GME) policy, particularly Medicare funding formulas, could expand physician training in rural and underserved communities. Begins at 0:16:07
Transcript
Highlights

Title

Rural graduate medical education funding and physician workforce shortages

Purpose

The House Ways and Means Subcommittee on Health held this hearing to examine the nation's growing physician shortage — projected at 187,000 by 2037 — and to explore how graduate medical education (GME) policy, particularly Medicare funding formulas, could expand physician training in rural and underserved communities. Five witnesses testified on rural residency programs, osteopathic medical education, lifestyle medicine curricula, and pediatric workforce needs, while members also debated Medicaid cuts, vaccine policy, and H-1B visa fees for foreign-trained physicians. Begins at0:16:07

Who spoke

Acting Chairman (filling in for Chairman Buchanan)0:16:07: Opened by citing a projected shortage of 187,000 physicians by 2037 and noting 83 million Americans live in areas with too few primary care physicians0:16:33; said large urban hospitals have collected 97% of 800 newly distributed rural GME slots despite a 10% rural set-aside0:18:11; later pressed witnesses on RRPD codification0:53:58 and cross-examined all witnesses on whether Medicaid cuts helped or hurt rural care0:57:26.

Rep. Mike Thompson (D-CA), sitting in for Ranking Member Doggett0:19:42: Argued Republicans are distracting from having "eliminated health care coverage for millions of Americans" via HR1's $1 trillion Medicaid cut0:20:29; cited a $200,000 federal loan cap versus a ~$300,000 median public medical school cost0:22:17; asked each witness a yes/no on whether the Medicaid cut helped or hurt rural care delivery0:57:26; later pressed Dr. Racine on Secretary Kennedy's vaccine stance and measles resurgence0:58:540:59:40.

Dr. Emily Hawes, UNC Chapel Hill / Sheps Center0:26:11: Said training physicians in rural settings doubles the probability they'll practice rurally0:27:02; the HRSA Rural Residency Planning and Development (RRPD) program has created 63 new rural residency programs (~800 positions), one in four rural residencies nationwide0:27:58; recommended lowering the rural-training threshold from 50% to 30% for surgical specialties and extending the Medicare cap-building window from 5 to 10 years0:29:530:30:18; later cited a Point Pleasant, WV psychiatry residency and a program where 9 of 13 residents stayed in-region1:14:031:44:16.

Jason Shenefield, CEO, Phelps Health (Rolla, MO)0:31:12: Said Missouri has residency slots for only two-thirds of its in-state medical graduates0:32:11; estimated $5–7 million to build required teaching space for a new family medicine residency on a ~2% hospital margin0:33:36; said sole community hospitals lose roughly $96,000 per resident per year versus PPS-paid hospitals due to IME exclusion0:34:03.

Dr. Thomas Mohr, Dean, Sam Houston State University College of Osteopathic Medicine0:36:10: Said students trained in underserved areas are nearly three times more likely to practice there, and over 73% of DOs practice in their residency state0:37:54; noted 29% of program directors seldom/never interview DO candidates and 73% require DOs to also take the MD licensing exam1:46:37; said Medicare residency caps frozen since 1997 constrain new rural programs1:09:44.

Dr. Jennifer Trilk, University of South Carolina School of Medicine Greenville0:41:15: Said chronic disease drives 90% of the nation's $4.9 trillion annual health spending0:41:42; reported 87% of her graduates use lifestyle medicine principles in patient care0:43:15; said nearly 1,000 family medicine and pediatric residency slots went unfilled in 2024, while 43% of her 2025 class matched into primary care0:44:110:44:55.

Dr. Andrew Racine, President, American Academy of Pediatrics0:46:34: Said families wait an average of 10–18 weeks to see pediatric specialists like child psychiatrists or developmental pediatricians0:47:51; said the average medical school graduate carries about $235,000 in debt0:48:44; said the trillion-dollar Medicaid cut "hurts"0:58:52; described pediatricians triaging patients in parking lots over measles fears0:50:49 and said vaccine misinformation is contributing to parents refusing newborn vitamin K and eye treatments1:24:57.

Rep. Ron Kelly1:14:38: Used a Chevrolet-dealer analogy (dealers fell from 4,800 to 2,878 since 1970) to argue rural markets can't sustain services without support1:15:08; noted his bipartisan Improving Seniors' Timely Access to Care Act has over 250 cosponsors but can't get floor movement1:16:05; yielded remaining time to Dr. Murphy1:17:13.

Rep. Greg Murphy (R-NC)1:17:14: Got Dr. Racine to confirm the CDC has not recommended against the measles vaccine1:17:30; argued the physician shortage stems partly from a 1994 "false literature" report on physician surplus and from graduates leaving clinical practice1:26:381:27:07; said congressionally added GME slots (~1,200) largely missed rural areas1:27:58.

Rep. Judy Chu (D-CA)1:19:53: Said more than 400 rural hospitals are at risk of closure and remaining ones could lose nearly 10% of Medicaid revenue1:20:20; said Idaho lost more than one-third of its OB-GYNs after its abortion ban, and rural labor-and-delivery units have closed at a rate of more than two per month for four years1:22:391:23:04.

Rep. Kevin Hern (R-OK)1:31:11: Cited Oklahoma's physician-to-patient ratio as 39% worse than the national average, with a third of Oklahoma physicians near retirement1:32:03; noted rural physicians face about 30% administrative burden versus 10% in urban areas1:32:32; asked about the new James Inhofe VA Medical Center's resident training rotations1:34:41.

Rep. Steven Horsford (D-NV)1:36:35: Said Nevada ranks 45th for active physicians and 49th for general surgeons1:37:03; described Nevada's Nurse Apprentice Program training over 700 nursing students, with 220+ hired into permanent positions1:37:261:37:54; criticized the Rural Health Transformation Program as temporary funding created "to secure a single senator's vote"1:38:49.

Rep. Carol Miller (R-WV)1:41:53: Noted less than 2% of residencies occur in rural communities and over 90% of residents have never practiced rurally1:42:46; cited her Rural Residency Planning and Development Act to formally authorize RRPD1:43:15; asked Dr. Mohr about her Fair Access to Residency Act for DO transparency1:45:43.

Rep. Brian Fitzpatrick (R-PA)1:47:49: Cited a projected shortage of up to 86,000 physicians by 20361:48:19; described his bipartisan Resident Physician Shortage Reduction Act (HR 4731, with Rep. Su) adding 14,000 residency slots over seven years1:48:48.

Rep. Linda Sánchez (D-CA)1:51:50: Said almost 40% of Californians lack access to routine primary care1:52:11; got Dr. Racine to confirm Medicaid funds half of all pediatric hospital admissions1:53:05; pressed on the $100,000 H-1B visa fee (up from $2,000–$5,000) and its effect on rural hospitals recruiting international physicians, who make up ~25% of the U.S. physician workforce and 64% of whom serve underserved areas1:54:091:54:36.

Rep. Blake Moore (R-UT)1:57:48: Asked about Utah's hub-and-spoke rural training models1:58:17 and about AI in medical education, citing Utah's new law allowing an AI platform to prescribe refills for chronic conditions2:01:40.

Rep. (Florida member, "Representative")2:03:18: Said Medicare spends roughly $22 billion a year on GME2:03:28; ran a rapid-fire show-of-hands series on H-1B and physician-visa policy2:04:37; said Florida Medical Association members report American doctors losing residency slots to foreign doctors2:08:19.

Rep. Danny Davis (D-IL)2:09:01: Noted Congress provided $225 million for the community-based Teaching Health Center program versus $22 billion for hospital-based training2:10:11; asked how to shift training dollars toward community health centers2:10:34.

Rep. Aaron Bean (R-FL)2:14:25: Proposed reshuffling GME slot distribution every 10 years alongside the census (the "Bean plan"), arguing current allocations still reflect 1990s data2:14:59; polled witnesses on the idea2:16:00.

Rep. (Alabama member representing the Black Belt)2:20:24: Described Vaughn Regional Medical Center in Selma, which has run a UAB family medicine residency for 30 years with 15 current residents that UAB may shrink2:22:40; said residents are "the lifeline" providing overnight hospital coverage2:23:09.

Rep. Don Beyer (D-VA)2:26:06: Cited CBO estimate that 7.8 million Americans will lose Medicaid coverage under the new law2:26:29; noted HRSA lost more than 700 staff in 2025, threatening RRPD program administration2:28:19; asked panel about shifting to a shorter, European-style medical education model2:29:34.

Key moments

The acting chairman said large urban hospitals exploited a Medicare loophole to collect 97% of 800 newly distributed GME slots despite a 10% rural set-aside, even though only 2% of residencies occur in rural America and rural-trained doctors are five times more likely to practice rurally0:18:110:18:39.

Shenefield said Phelps Health's new rural family medicine residency needs $5–7 million in facility buildout and faces an estimated $100,000 per-resident annual funding gap because sole community hospitals are excluded from IME payments, potentially costing $96,000 less per resident than PPS-paid hospitals0:33:360:34:031:08:10.

Rep. Thompson's yes/no round on whether the Medicaid cuts helped or hurt rural care drew evasive answers from most witnesses except Dr. Racine, who directly answered "it hurts"0:57:260:58:52.

Sharp exchange between Rep. Murphy and Dr. Racine on vaccines: Murphy got Racine to confirm CDC has not recommended against the measles vaccine, then argued reluctance about expanding vaccine schedules is scientifically reasonable, citing the peanut-allergy dogma reversal as precedent1:17:141:18:231:18:46.

Rep. Chu cited Idaho losing more than one-third of its OB-GYNs since its abortion ban and rural labor-and-delivery units closing at a rate of more than two per month for four years; Dr. Racine noted he could not speak for OB-GYN specifics but confirmed pediatric risks tied to fewer birth attendants1:22:391:23:59.

Dr. Mohr said 29% of residency program directors seldom or never interview DO candidates and 73% require DOs to also pass the MD licensing exam despite universal state recognition of the COMLEX-USA exam1:46:371:47:02.

Rep. Sánchez pressed on the new $100,000 H-1B visa fee for physicians (up from $2,000–$5,000), which Shenefield and Hawes acknowledged would be a significant new financial burden for rural hospitals recruiting international physicians, who are twice as likely to practice rurally1:54:361:55:331:56:01.

Rep. Bean's "reshuffle the deck" proposal to redistribute GME slots every 10 years by census drew tentative openness from Dr. Mohr ("yes") but caution from Dr. Hawes, who cited unexplored "unintended consequences"2:15:582:16:282:17:41.

Rep. Beyer noted more than 700 HRSA staff were fired or forced out in 2025, raising concerns about the agency's ability to continue administering the RRPD program that created 66 new rural residencies with 40 more in development2:28:462:29:11.

Hawes cited a Kahaba Medical Center (Bibb County, AL) example where a new residency-linked labor and delivery unit reduced infant mortality after opening1:59:192:24:54.

Rep. Fitzpatrick and Rep. Miller both highlighted bipartisan bills — the Resident Physician Shortage Reduction Act (14,000 new residency slots over seven years) and the Fair Access to Residency Act — as concrete legislative responses discussed during the hearing1:48:481:45:43.

Metadata

CommitteeHouse Ways and Means Subcommittee on Health
Chamber / CongressHouse · 119th Congress
Date2026-02-24
TypeHearing
Witnesses
Dr. Emily Hawes — Professor, University of North Carolina at Chapel Hill, Director, Sheps Graduate Medical Education Technical Assistance Center Chapel Hill, North Carolina
Mr. Jason Shenefield — Chief Executive Officer, Phelps Health
Dr. Thomas Mohr — Dean, Dean, Sam Houston State University College of Osteopathic Medicine
Dr. Jennifer Trilk — Director, Lifestyle Medicine, University of South Carolina School of Medicine Greenville, Co-founder and Director of Lifestyle Medicine Education
Dr. Andrew Racine — President, American Academy of Pediatrics
Videoyoutube
Transcript391 caption blocks · 21,873 words · 2:32:16 runtime
EventCongress.gov 118993