III. Training: Misdirected graduate medical education funding is failing to produce new primary care physicians, exacerbating patient access issues

Financially strained primary care practices discourage students from choosing primary care careers

Rebuilding the primary care workforce will require training the workforce of the future. Unfortunately, over the past decade, we have not seen a proportionate rise in the number of students choosing a primary care specialty compared to the number choosing non-primary care specialties (Figure 8). This has led to a widening of the gap between the density of primary care residents and residents in all other specialties and further exacerbation of the primary care workforce crisis.

Figure 8. Disparity Widens in Residents Per Capita Growth Between Primary Care and All Other Specialties (2012—2022)


Data Sources: Analyses of American Medical Association Masterfile (2016—2022), Centers for Medicare and Medicaid Services Medicare Provider Enrollment, Chain, and Ownership System data (2016—2022), National Plan and Provider Enumeration System data (2016—2022), Centers for Medicare and Medicaid Services Physician and Other Practitioners data (2016—2022), and the American Community Survey Five-Year Summary Files (2016—2022).

Medical students rotating through outpatient primary care are likely to see dysfunctional outpatient settings with underresourced practices and stressed clinicians.65 This experience, coupled with the fact that PCPs are relatively underpaid compared to their subspecialty colleagues, is a well-documented reason that medical students do not choose primary care careers.46, 65 

Underinvesting in community-based training while prioritizing hospital-based programs drives trainees away from primary care

Even students who do enter primary care residencies do not end up staying in the primary care workforce.7, 66, 67 Many of the primary care residents represented in Figure 8 will end up going into subspecialty fellowships after residency, or working in an inpatient, hospital-only setting as hospitalists. In fact, only 19.8% of all physician residents (excluding hospitalists in 2022) end up working in primary care, whereas 24.4% of all residents (including hospitalists in 2022) are in primary care residencies (Figure 9).

Figure 9. Percentage of New Physicians Entering Primary Care Drops to Lowest Rate in a Decade (Hospitalists vs Non-Hospitalists) (2012—2022)

Data Sources: Analyses of the 2024 American Medical Association Historical Residency File, the 2024 American Medical Association Masterfile, and the 2012-2022 Center for Medicare and Medicaid Services Physician and Other Practitioners data

Notes: Primary care specialties included family medicine, general practices, internal medicine, geriatrics, and pediatrics. Specialty for doctors of osteopathy (DOs) are not always included in the American Medical Association Masterfile, so these data may be an underestimation of the true workforce. (See limitations in Appendix for more details.) 

While unfavorable views of the primary care lifestyle and underpayment of PCPs contribute to this attrition, the way that the US graduate medical education (GME) system is financed also plays a role. A majority of the approximately $24 billion spent on GME comes from Medicare ($17.8 billion in 2021),68 and a large portion comes from Medicaid ($7.38 billion).69 Although there are other sources of GME funding, including the US Department of Veterans Affairs, the Department of Defense, private payers, and the Health Resources and Services Administration (HRSA), these sources are dwarfed by CMS. CMS GME funding is intended to develop a workforce to effectively and efficiently care for Medicare and Medicaid patients, but that goal is not being met. Despite the reality that most patient care occurs in primary care settings,70 Medicare and Medicaid funding is not effectively building a primary care workforce. Our state-level analysis shows a negative association between Medicare GME funding and the percentage of physicians entering primary care three years later: the more funding a state receives, the fewer physicians join primary care after three years (Figure 10). A similar, though weaker, association exists for Medicaid (Figure 11). For example, New York received the highest level of Medicare funding for GME in 2019 at $15.5 million, but had very low primary care production, with only 15% of its physicians entering primary care three years later. New York was also an outlier on the Medicaid side, receiving $8.3 million in Medicaid funding for GME in 2015, with only 17% of new doctors entering primary care three years later. By comparison, North Dakota received only $2.1 million in Medicare GME funding, but 43% of new physicians in the state entered primary care. 

Figure 10. More Medicare GME Funding (2019) in a State Is Associated with Lower Percentage of New PCPs (2022) 

Data Sources: Analyses of the 2019 RGC’s Graduate Medical Education For Teaching Hospitals; the 2019 Area Health Resource File; the 2024 American Medical Association Historical Residency File; the 2024 American Medical Association Masterfile; and the 2012-2022 Center for Medicare and Medicaid Services Physician and Other Practitioners data 

Notes: DC was excluded. Primary care specialties included family medicine, general practices, internal medicine, geriatrics, and pediatrics. Hospitalists were excluded. Specialty for doctors of osteopathy (DOs) are not always included in the American Medical Association Masterfile, so these data may be an underestimation of the true workforce. (See limitations in Appendix for more details.) 

Figure 11. More Medicaid GME Funding (2015) Leads to Lower Percentage of New PCPs (2018) 

Data Sources: Analyses of the 2016 AAMC’s Medicaid Graduate Medical Education Payments: A 50-State Survey; the 2015 Area Health Resource File; the 2024 American Medical Association Historical Residency File; the 2024 American Medical Association Masterfile; and the 2012-2022 Center for Medicare and Medicaid Services Physician and Other Practitioners data. 

Notes:DC and states with $0 Medicaid GME (AK, CA, MA, NC, ND, NH, RI, and WY) were excluded. Primary care specialties included family medicine, general practices, internal medicine, geriatrics, and pediatrics. Hospitalists were excluded. Specialty for doctors of osteopathy (DOs) are not always included in the American Medical Association Masterfile, so these data may be an underestimation of the true workforce. (See limitations in Appendix for more details.) 

Why is it that traditional GME funding from CMS is not contributing to the creation of a robust primary care workforce? One answer lies in where the money goes. Data suggest that how and where a physician trains dictates how and where they end up practicing.71–75 At present, most GME funding is provided by Medicare and funneled directly to academic hospitals.76, 77 Consequently, the majority of CMS-funded residency training occurs in large academic hospitals rather than community-based settings, leading many physicians to pursue hospital-based specialties as opposed to community-based primary care.78 

Community-based training programs can bolster the primary care workforce — but low funding limits their reach 

The Teaching Health Center (THC) program is one example of a training program that is primarily community-based. Residents in these programs end up staying in primary care and working with more vulnerable patient populations.79 Unfortunately, funding for community-based programs such as THCs is low ($155 million in 2022)80 and unstable.81, 82 As a result, most residents in the United States do not receive community-based training, with funding favoring traditional GME programs (Medicare-funded) in large academic hospitals over community-based programs like THCs. When examining the percentage of residents training in community-based settings — defined broadly as programs outside academic medical centers or hospitals affiliated with medical schools, or narrowly as rural training tracks or HRSA THC GME grant programs — we found that only 5.1% of primary care residents spent the majority of their training in outpatient settings with underserved populations (Figure 12). By not funding more community-based training, the GME system is failing to produce a workforce that meets the needs of the US population. 

Figure 12. Increase in Percentage of Primary Care Residents Training in Community-Based Settings (2013—2022)

Data Sources: Analyses of Accredited Council of Graduate Medical Education program-level data to get counts for medical residents; FREIDATM American Medical Association Residency & Fellowship Program Database, a rural residency program list from the RTT Collaborative, and Health Resources and Services Administration Teaching Health Center Graduate Medical Education program dashboards to identify community-based training programs, 2013-2022.

Notes: Community-based training was identified if the majority of training does not take place in a university academic medical center or a hospital with a medical school affiliation (broad) or programs with rural training track or Health Resources and Services Administration Teaching Health Center Graduate Medical Education grant (narrow). Primary care specialties included family medicine, internal medicine, geriatrics, and pediatrics. 

Progress on Policy Solutions: Training

ACTION 3.1: Health care organizations should strive to diversify the primary care workforce and customize teams to meet the needs of the populations they serve. Government agencies should expand educational pipeline models and improve economic incentives. 

  • Some medical schools such as the University of California–Davis are investing in new pathway programs to recruit and retain medical students from underrepresented communities and prepare them for primary care residencies. 
  • No pipeline expansion on the government side.

ACTION 3.2: CMS, [Veterans Affairs], HRSA, and states should redeploy or augment Title VII, Title VIII, and GME funding to support interprofessional training in community-based primary care practice environments. 

  • The federal government has not yet rebalanced GME funding to prioritize training in community-based primary care practice environments, but new bipartisan draft legislation proposes creating new residency positions in primary care and public reporting on federal GME programs. 
  • HRSA’s overall budget in 2024 was slightly less than the budget for 2023, but it did increase spending on “interdisciplinary, community based linkages”83 by $1 million. 
  • CMS’s request for information on the “primary care exception” in the CY25 Medicare PFS indicates promising change on the horizon. The primary care exception allows resident physicians to perform limited services without the physical presence of a teaching physician while under the supervision of that physician. Not only does this allow for firsthand decision-making on the part of the resident, but it also allows for greater revenue for teaching practices in the community. 
  • A Senate committee request for information on needed GME reform was sent to stakeholders. Roundtable discussions were convened with numerous stakeholders in primary care, including physician membership organizations such as the American Academy of Family Physicians. 
  • The proposed Medicare PFS could also provide incentives for practicing physicians to serve as preceptors, bolstering educational opportunities in community-based settings. 
  • Florida legislation passed in 2024 requires Medicaid GME-funded facilities to account for the number and type of physicians being trained and established a GME committee to use this data to oversee the use of funding to better meet the state’s needs. 

Notes

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