This paper addresses key issues concerning the physician workforce and
the financing of graduate medical education, The American College of
Physicians recommends the establishment of a national advisory organiz
ation to develop a coherent and coordinated national policy on the hea
lth professions workforce. Given the increasing oversupply of physicia
ns, the College recommends that no new medical schools be created, tha
t total enrollment in U.S. medical schools not increase, and that the
number of international medical graduates entering residency training
in the United States be restricted, All health care payers should shar
e the cost of graduate medical education, funding should be predictabl
e and stable, and funding should include ambulatory training sites. Th
e number of first-year residents should be linked more closely to the
annual number of medical graduates in the United States, and Medicare
payments for medical education and training should be made only to the
health maintenance organizations that actually incur these costs. The
College advises that hospitals providing care primarily to underserve
d populations and indigent persons need stable funding with which to p
ay for personnel to replace residents. The College calls for research
to evaluate the feasibility of establishing a voucher system, in which
each resident would receive payment authorization certificates to fun
d training at accredited residency sites, Additional research is also
recommended to distinguish the individual costs involved in graduate m
edical education from other costs associated with graduate medical edu
cation and the costs of care of indigent persons.