This study assesses how student loan debt and scholarships, loan repayment
and related programs with service requirements influence the incomes young
physicians seek ann attain, influence whether they choose to work in rural
practice settings and affect the number of Medicaid-covered and uninsured p
atients they see. Data are from a 1999 mail survey of a national probabilit
y sample of 468 practicing family physicians, general internists and pediat
ricians who graduated from US. medical schools in 1988 and 1992. A majority
of these generalist physicians recalled "moderate" or "great" concern for
their financial situations before, during and after their training. Eighty
percent financed all or part of their training with loans, and one-quarter
received support from federal, state or community-sponsored scholarship, lo
an repayment and similar programs with service obligations. In their first
job after residency, family physicians and pediatricians with greater debt
reported caring for more patients insured under Medicaid and uninsured than
did those with less debt. For no specialty was debt associated with physic
ians' income or likelihood of working in a rural area. physicians serving c
ommitments in exchange for training cost support, compared to those without
obligations, were more likely to work in rural areas (33 vs. 7 percent, re
spectively p<0.001) and provided care to more Medicaid-covered and uninsure
d patients (53 vs. 29 percent, p<0.001) but did not differ in their incomes
($99,600 vs. $93,800, p=0.11). Thus, among physicians wire train as genera
lists, the high costs of medical education appear to promote, not harm, nat
ional physician workforce goals by prompting participation in service-requi
ring financial support programs and perhaps through increasing student borr
owing. These positive outcomes fbr generalists should be weighed against ot
her known and suspected negative consequences of the high costs of training
, such as discouraging some poor students from medical careers altogether a
nd perhaps influencing some medical students with high debt not to pursue p
rimary care careers.