State funding increased for graduate medical education

The Indiana Physician Coalition applauded state lawmakers whose final budget vote on Thursday for fiscal year 2022-23 approved an increase in funding for graduate medical education. As a result, more physician residency training programs will add to the number of Hoosier doctors treating more patients in underserved areas.

The budget includes $9 million in biennial appropriations with $4 million coming in fiscal year 2022 and $5 million in fiscal year 2023, which represents an increase of $1 million over the previous state budget.

“Thanks to the work of the Indiana General Assembly, a greater number of new physicians will undergo the rigorous education and training that is necessary to lead medical teams and meet the needs of Hoosier patients,” said Roberto Darroca, MD, president of the Indiana State Medical Association, one of 13 groups that are members of the coalition.

The coalition estimates that Indiana loses 133 graduating medical students to other states each year due to a shortage of in-state residency programs. Because physicians typically end up practicing medicine near the location of their residency programs, the lack of such programs has led to a physician shortage in some locations around the state.

Since the creation of the GME Board in 2015 by the Indiana General Assembly, more than 70 new resident physicians and 220 residency slots have been created. That adds up to an additional 126,000 direct primary care hours for patients.

Facts about residency programs and GME funding

  • $3.6 million: Regional economic impact for every resident physician who becomes a primary care physician.
  • $1.5 million: Generated by every resident physician each year they remain in a community to practice medicine.
  • Six to seven jobs: Created by one physician’s practice within that community.
  • $332 million: Statewide economic impact by 2025 expected from current/planned new resident physicians from Indiana medical resident programs.

A new physician, either a Doctor of Medicine (MD) or Doctor of Osteopathic Medicine (DO), accumulates up to 16,000 clinical hours by the time they complete their training. It takes seven to 12 years of preparation for practice, including four years of medical school and three to eight years of residency and fellowship training in a medical or surgical specialty.