CMS Issues Final Rule to Improve Healthcare Workforce

On Dec. 17, CMS announced it is funding 1,000 residency slots for hospitals serving rural and underserved communities
Dec. 20, 2021
2 min read

According to a Dec. 17 press release, the Centers for Medicare & Medicaid Services (CMS) issued a final rule that will improve the healthcare workforce and fund more medical residency positions in hospitals serving rural and underserved communities.

The release states that “The Fiscal Year (FY) 2022 Inpatient Prospective Payment System (IPPS) final rule with comment period establishes policies to distribute 1,000 new Medicare-funded physician residency slots to qualifying hospitals, phasing in 200 slots per year over five years. CMS estimates that funding for the additional residency slots, once fully phased in, will total approximately $1.8 billion over the next 10 years. In implementing a section of the Consolidated Appropriations Act (CAA), 2021, this is the largest increase in Medicare-funded residency slots in over 25 years. Other sections of the CAA being implemented further promote increasing training in rural areas and increasing graduate medical education payments to hospitals meeting certain criteria.”

Further, “In allocating these new residency slots, CMS will prioritize hospitals with training programs in areas demonstrating the greatest need for providers, as determined by Health Professional Shortage Areas. The first round of 200 residency slots will be announced by January 31, 2023, and will become effective July 1, 2023.”

CMS Administrator Chiquita Brooks-LaSure was quoted in the release saying that “CMS recognizes the importance of encouraging more health professionals to work in rural and underserved areas, and the need to train and retain physicians to improve access to health care in these communities. The CAA created a tremendous opportunity for us to address health care inequities, and CMS is grateful to Congress for their action on this important issue.”

The fact sheet on the FY 2022 IPPS final rule with comment period can be accessed here.

The FY 2022 IPPS final rule with comment period (CMS-1752-FC3), displayed at the Federal Register, can be accessed here.

About the Author

Janette Wider

Janette Wider

Managing Editor

Janette Wider is Managing Editor of Healthcare Innovation, covering health IT and strategy. She has been covering health IT developments for the publication’s CIO- and CIMO-based audience and has taken a particular interest in cybersecurity, ransomware, telehealth, and policy and payment. 
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