CMS recognizes that there is a shortage of individuals willing to work in long-term care hospitals and other hospitals in rural and underserved areas. In order to close the health care equity gaps, this needs to be addressed.

Thus, the proposed rule would fund medical residency positions in underserved and rural communities. This is a way to address workforce shortages and encourage more health professionals to work in these areas. It also provides funds and methods to retain and train high-quality physicians.

CMS is proposing to distribute 1,000 additional physician residency slots to qualifying long-term care hospitals and other facilities.  200 slots will be available over 5 years. This is in accordance with the Consolidated Appropriations Act, 2021. Estimates for the additional funding necessary for these positions total $300 million.

HHS Secretary Xavier Becerra stated, “Hospitals are often the backbone of rural communities – but the COVID-19 pandemic has hit rural hospitals hard, and too many are struggling to stay afloat. This rule will give hospitals more relief and additional tools to care for COVID-19 patients and it will also bolster the health care workforce in rural and underserved communities.” Becerra followed that up with, “The Biden Administration is committed to expanding health equity in communities across the country, especially in rural America.”