The House Judiciary Committee holds a hearing entitled, "The MATCH Monopoly: Evaluating the Medical Residency Antitrust Exemption."
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00:00:00At any time, welcome everyone to today's hearing on medical residency antitrust exemption.
00:00:07I will not recognize myself for an opening statement.
00:00:10Before I do that, I want to wave on.
00:00:12We have one member, Mr. Onder, Dr. Onder, who will be waving on to today's hearing.
00:00:23Without objection, Mr. Onder will be permitted to participate in this hearing to question the witnesses
00:00:27if a member yields him time for that purpose.
00:00:42When America's future doctors apply for residency, they enter a closed market controlled by a single accreditation monopoly.
00:00:50The Accreditation Council for Graduate Medical Education, or ACGME,
00:00:55and the centralized hiring system called the match, quote-unquote the match.
00:01:01Together, those two gatekeepers dictate who trains, where they train, and at what wage.
00:01:08Through mountains of red tape, the ACGME alone decides which programs survive and how they operate.
00:01:16And because most opportunities are filled through the match, the allegorythm wields unrivaled power over resident hiring.
00:01:26Twenty-three years ago, residents tried to challenge this setup under America's antitrust laws.
00:01:32They argued that the ACGME and match and the programs operating under them colluded to restrict slots, limit choice, and keep wages low.
00:01:43But before the case could be heard, Congress kowtowed to the hospital lobby and slid an antitrust exemption for graduate medical resident matching programs into the unrelated pension bills.
00:01:55As a result, there's no competition now, and it decides a fate of more than 50,000 residents and fellows each year.
00:02:04Applicants cannot negotiate pay.
00:02:06They must accept whatever slot the logarithm hands them or whatever terms they are given.
00:02:13The command and control model eliminates competition and flattens salaries.
00:02:17Last year, the average first-year resident earned just $66,000.
00:02:22That's roughly $60,000 less than a physician assistant or $100,000 less than a nurse practitioner,
00:02:29despite working long hours and holding more advanced credentials.
00:02:32The match monopoly doesn't just pinch paychecks, it worsens the doctor's shortage.
00:02:38Each cycle, thousands of graduates fail to match with the program.
00:02:42Last year alone, 8,869 applicants, about one in five, were left without a slot.
00:02:49Because every state requires a residency to become a licensed doctor,
00:02:53those unmatched doctors can get a license or board certification.
00:02:56Thus, the match acts as a bottleneck for the training of American physicians
00:03:01precisely when we need more doctors, not fewer.
00:03:07And this oppressive process discourages smart young students from pursuing medical degrees.
00:03:11The squeeze also comes as America's population ages and demands more care.
00:03:16Today, over 77 million people already live in areas with a shortage of primary care doctors.
00:03:23That figure is projected to climb sharply in the years ahead.
00:03:27But as a result of the monopoly, power given to the teaching hospitals,
00:03:32our future doctors, are not choosing primary care.
00:03:37Instead, they're turning to more specialized medicine,
00:03:40hoping to more quickly recoup their investment with the higher salary of specialized practices
00:03:44like orthopedics, cardiology, and anesthesiology.
00:03:48According to Medscape 2024 Physician Compensation Report,
00:03:53the average salary for a primary care physician in the United States is $277,000.
00:03:59By contrast, specialists earn an average of over $394,000.
00:04:05This leaves our communities with fewer family doctors, longer wait times, and a decreased level of care.
00:04:11A second choke point is the ACGME's accreditation monopoly.
00:04:18The ACGME is the sole gatekeeper for the residency program approval in the United States.
00:04:24Without its blessing, programs lose access to billions of dollars in Medicare and Medicaid funding.
00:04:30Doctors must graduate from an ACGME-accredited program to practice medicine.
00:04:36The organization uses that leverage to impose one-size-fits-all rules that crush community hospitals and rural programs.
00:04:44Many small rural residency programs have closed their doors under the weight of the costly mandates.
00:04:50When programs close, residents lose positions and patients lose access to care.
00:04:55Two decades after Congress granted the carve-out for this system,
00:04:58the market is more conclusive and less competitive than ever.
00:05:02Resonant wages are completely stagnant.
00:05:07And America is producing fewer practicing doctors,
00:05:09even as demand for affordable, high-quality care grows at a rapid pace.
00:05:14Today's hearing asks a simple question.
00:05:17Will the next generation of physicians train in a free market or under a government-sanctioned monopoly?
00:05:23Today's witnesses know this system firsthand.
00:05:26Their testimony will help the committee understand the medical residency market
00:05:30and confront the anti-competitive fallout of the ACGME and the match,
00:05:36and their special interest exemption.
00:05:39I want to thank each witness for appearing before us today and look forward to your insights.
00:05:45I'll now recognize the ranking member, Mr. Nadler, for an opening statement.
00:05:49Thank you, Mr. Chairman.
00:05:52Mr. Chairman, it's a little difficult to take seriously
00:05:55a hearing that Republicans bill as an effort to improve health care in this country
00:06:00when their colleagues and other committees are busy gutting Medicaid and other programs,
00:06:05which will have a devastating impact on the health of millions of Americans.
00:06:09Apparently, Republicans think that what really ails our health care system
00:06:12is that low-income Americans, people with disabilities, and children have too much health care.
00:06:18That is the only explanation, because, of course, it couldn't just be a cynical ploy
00:06:23to fund massive tax cuts for billionaires in the backs of the most vulnerable among us.
00:06:29And these same Republicans who claim they want to, quote,
00:06:32make America healthy again have remained silent
00:06:34while the Trump administration systematically dismantles our entire public health infrastructure.
00:06:41Under the leadership of America's number one vaccine skeptic
00:06:44and conspiracy theory promoter, Robert Kennedy, Jr.,
00:06:48the Department of Health and Human Services has fired more than 20,000 experts,
00:06:53eliminated entire agencies, deleted important data sets and public health tracking tools,
00:06:59and cut or threatened to cut billions of dollars in grants for scientific research.
00:07:04At the same time, the administration is waging an ideological war on institutions,
00:07:09such as universities and the National Institutes of Health,
00:07:11that develop the groundbreaking research that underpins most medical advances.
00:07:17The NIH alone has suffered a $1.8 billion cut,
00:07:21and by some estimates as much as $2.7 billion.
00:07:24That will undoubtedly set back research into cancer treatments,
00:07:28infectious disease prevention, and much more by many years.
00:07:32Meanwhile, Republicans cheer as the administration's immigration policies,
00:07:37chase out foreign-born students and researchers,
00:07:39and send a clear message to anyone abroad who might wish to bring their talents and innovation to our country,
00:07:45you are not welcome.
00:07:47Taken collectively, these actions represent the dramatic effort to undermine,
00:07:52destroy, and limit health care research,
00:07:54access to critical health data, and access to care.
00:07:57The impact of these cuts will likely fall most deeply on marginalized communities,
00:08:02but we will all suffer the consequences.
00:08:05That is why today's hearing on the National Residency Matching Program seems beside the point.
00:08:10The health care system is facing an outright assault from the Trump administration,
00:08:15and yet we are being called upon to examine the residency matching program.
00:08:19This is not to say that there are no issues related to the match worth exploring in due course.
00:08:25Any valid criticisms of the program warrant appropriate consideration,
00:08:29whether they concern salary, hours, working conditions, or other matters that call out for refinement.
00:08:35And as part of that revisiting, we could account for collective bargaining,
00:08:39which has led to approximately 20 percent of the resident physician workforce becoming unionized.
00:08:44But we should also recognize that the match provides an effective system
00:08:48for placing more than 40,000 doctors a year across more than 6,500 residency programs
00:08:54and tracks throughout every region of the country that suits the needs of both students and hospitals alike.
00:09:02It's important to remember that the match was created in 1952
00:09:05to solve problems in the placement process that were created by unfettered market competition.
00:09:10Before the match was instituted, residency programs competed with each other
00:09:15to make offers earlier and earlier so as to preempt other programs.
00:09:20This resulted in students receiving limited-time offers as early as the beginning of their junior year of medical school
00:09:25when they had limited exposure to clinical practice before they had done rotations.
00:09:31Attempts to delay the matching process by withholding student information until senior year
00:09:36led to exploding offers with extremely short fuses.
00:09:39This system served no one, and the match was created to address these market breakdowns.
00:09:45Over 70 years later, it is still largely working as intended,
00:09:49avoiding what would otherwise be chaos,
00:09:51even as the needs of candidates and residency programs have evolved.
00:09:55While no system is perfect, many of the Republicans' criticisms
00:09:59simply do not hold up under careful scrutiny.
00:10:02For example, Republicans have taken aim at foreign doctors who enter the match,
00:10:05arguing that they are displacing American students.
00:10:09But statistics show that 99% of all U.S. medical school graduates enter residency or full-time practice in the country within six years of graduation.
00:10:18There is simply little evidence to suggest that foreign medical school graduates are taking slots from U.S. residents.
00:10:26Rather than scapegoating immigrants, Republicans could address a real issue,
00:10:30the need for additional residency slots overall.
00:10:34But that would take an investment in new funding from the federal government,
00:10:37and we have already seen where the Republicans' priorities lie.
00:10:41Finally, if the majority wishes to address flaws in the health care system,
00:10:45they need only look at the important work this subcommittee did under Democratic leadership.
00:10:50We examined issues related to consolidation and market concentration across the health care industry,
00:10:55and we passed several pieces of legislation addressing the rising cost of prescription drugs.
00:11:00Many of these issues had bipartisan support, and there is much we can do together.
00:11:06But instead, Republicans want to distract us from their disastrous health care policies with a hearing on a minor issue.
00:11:13We can do better.
00:11:14I appreciate our witnesses for appearing today.
00:11:17I look forward to hearing from them, and I yield back the balance of my time.
00:11:20The gentleman yields back.
00:11:21Without objection, all other opening statements will be included in the record.
00:11:24We'll now introduce today's witnesses, Dr. James Lynn.
00:11:29Dr. Lynn is a clinical professor of geriatric medicine at the Lake Erie College of Osteopathic Medicine
00:11:35and the president of the LACOM Institute for Successful Living.
00:11:40His practice focuses on geriatrics, internal medicine, and primary care.
00:11:46Mr. Sherman Merrick.
00:11:47Mr. Merrick is the founder and principal attorney at Merrick Health Law,
00:11:50a Chicago-based firm that focuses on representing medical residents in disputes with teaching hospitals
00:11:56through internal appeals, administrative proceedings, direct negotiations, mediation, and litigation.
00:12:03Over the past 25 years, he and his firm have represented more than 1,000 medical residents nationwide.
00:12:10Mr. Thomas Miller.
00:12:12Mr. Miller is a resident fellow in the health policy studies at the American Enterprise Institute,
00:12:17where he focuses on regulatory barriers to choice and competition, market-based alternatives,
00:12:24health care litigation, and the political economy of health care reform.
00:12:29He previously served as a senior health economist with the Joint Economic Committee
00:12:34and as a senior lecturing fellow at Duke University School of Law.
00:12:40Dr. William Feldman.
00:12:41Dr. Feldman is an assistant professor of medicine at Harvard Medical School and Brigham and Women's Hospital.
00:12:49Dr. Feldman's research focuses on drug pricing, FDA regulation, and pharmaceutical policy.
00:12:55We welcome our witnesses and thank them for appearing today.
00:12:58We will begin by swearing you in.
00:13:00Would you please rise and raise your right hand?
00:13:03Do you swear or affirm under penalty of perjury that the testimony you are about to give is true
00:13:12and correct to the best of your knowledge, information, and belief?
00:13:16So help you God.
00:13:18Let the record reflect that the witnesses have answered in the affirmative.
00:13:25You can be seated.
00:13:27Please know that your written testimony will be entered into the record in its entirety.
00:13:31Accordingly, we ask that you summarize your testimony in five minutes.
00:13:38Dr. Lin, you may begin.
00:13:42Thank you, Mr. Chairman and Ranking Member Nadler and members of the committee.
00:13:47Thank you for the opportunity to testify today on a matter of critical national concern,
00:13:52the increasingly detrimental impact of Accreditation Council for Graduate Medical Education,
00:13:57otherwise known as ACGME, Standards on the Sustainability of Medical Residency Fellowship Programs
00:14:03in Rural and Underserved Areas.
00:14:06LECOM Graduate Medical Education, which has trained over 693 residents since 1977,
00:14:13stands as a case study in how a rigid and monopolistic accreditation system
00:14:18is undermining the health infrastructure of America's smaller communities.
00:14:22Despite a proven track record of producing competent, board-certified physicians,
00:14:27417 of whom remain in practice within a 100-mile radius of Erie, Pennsylvania,
00:14:32our programs are being dismantled not due to deficiencies in quality,
00:14:36but due to arbitrary urban-centric inflexible accreditation policies.
00:14:41ACGME is a sole accrediting body for graduate medical education in the U.S.,
00:14:46influencing over $16 to $18 billion in federal and institutional investment.
00:14:50Yet, its governance is dominated by faculty from major academic centers.
00:14:56As a result, accreditation criteria are designed for high-resource university hospitals,
00:15:01not for the realities of rural health systems.
00:15:04Programs have closed due to faculty departure tied to vaccination mandates,
00:15:09a general surgery program in Arnett, Elmira, New York,
00:15:13inflexible geographic limitations on training sites,
00:15:16despite affiliation with top-tier hospitals,
00:15:19LECOM orthopedic program,
00:15:21requirement redundancies that ignores consortium models,
00:15:25punishing programs for sheer training infrastructure,
00:15:28excessive administrative costs,
00:15:30even when programs have no active residence.
00:15:33This rigidity stifles innovation,
00:15:35penalizes lean and effective community models,
00:15:38and directly contributes to the loss of training pathways for future physicians.
00:15:42The LECOM orthopedic surgical residency program,
00:15:46despite positive outcomes,
00:15:48premier training partnerships,
00:15:49and high board pass rates,
00:15:51the orthopedic surgery program was closed due to inflexibility rules
00:15:54about program mix and rotation supervision.
00:15:58This displaced residents,
00:16:00disrupt their careers,
00:16:01and stripped Erie County of essential orthopedic care.
00:16:05The LECOM internal medicine residency program,
00:16:07This is a long-standing program that was closed following an unresolved hotline complaint,
00:16:13despite an internal and legal review finding of no merit.
00:16:17Its closure cascaded into a termination of our gastroenterology and pulmonary fellowship,
00:16:22eliminating critical pipeline for specialty care.
00:16:27Since 2020,
00:16:28the number of withdrawn or closed programs has increased dramatically,
00:16:31many in rural areas.
00:16:33The ACGME one-size-fits-all model disproportionately harms smaller institutions
00:16:38and federally qualified health centers.
00:16:40Programs have been denied probationary periods or closed outright,
00:16:44sometimes via Zoom meetings,
00:16:45with no room for remediation.
00:16:48Critical specialties like psychiatry, cardiology, obstetrics,
00:16:51and surgery are being lost in precisely the regions that need them most.
00:16:57The loss of residency program directly reduced patient access today and in the future.
00:17:03Without local training opportunities,
00:17:05DOs, candidates,
00:17:06faces increasing exclusion from competitive specialties
00:17:09due to documented disparities in the match.
00:17:12Moreover, rural systems and urban underserved
00:17:17are left with workforce shortages,
00:17:19longer wait times,
00:17:20and higher recruitment costs.
00:17:22Even federal efforts are thwarted.
00:17:24Despite winning a rural residency planning grant from HRSA,
00:17:28our psychiatry program was denied rural track status
00:17:31by ACGME due to a rigid and outdated definition of rural
00:17:36in direct conflict with other federal agencies like CMS and USDA.
00:17:41Some proposed solutions.
00:17:43Number one,
00:17:44revise accreditation criteria,
00:17:46modernize standard to allow flexibility in rural
00:17:48and consortium-based models.
00:17:51Number two,
00:17:51diversity review committees,
00:17:53ensure rural osteopathic educator
00:17:55have a voice in shaping specialty standard.
00:17:57Number three,
00:17:58create an alternative accreditor,
00:18:01promote innovative training track models
00:18:04specifically designed for rural and urban underserved areas.
00:18:08Streamline administrative burden,
00:18:10shift focus from bureaucratic checklist
00:18:12to actual outcomes in training and patient care.
00:18:15Protect federal investments,
00:18:17align ACGME definition with federal and rural health policies
00:18:20to avoid undermining HRSA support initiative.
00:18:22The current ACGME model well-intentioned
00:18:26has created systemic barriers
00:18:27that disproportionately harm rural communities,
00:18:30limit innovations,
00:18:31and suppress diversity in physician pipeline.
00:18:34We urge Congress and CMS to take action,
00:18:36whether through oversight reform
00:18:38or the creation of an alternative accreditation pathway
00:18:41to ensure rural America is not left behind.
00:18:44We can no longer allow bureaucratic rigidity
00:18:46to dictate where and how the next generation of doctors are trained.
00:18:49The health of millions in rural and urban underserved region
00:18:52depends on a more inclusive and responsive system.
00:18:56Thank you, Dr. Lin.
00:18:58Mr. Merrick, you're now recognized for five minutes.
00:19:07Here we go.
00:19:10Good morning, Chairman Fitzgerald,
00:19:12Ranking Member Nadler,
00:19:13and members of the subcommittee.
00:19:15Thank you for the opportunity to testify today.
00:19:18My name is Sherman Merrick,
00:19:20and I support repeal of the 2004 Match Antitrust Exemption.
00:19:24It was engineered to stop a lawsuit I filed in 2002
00:19:28on behalf of medical residents.
00:19:31I have since represented more than 1,000 residents
00:19:34in disputes with their hospitals.
00:19:36I witness daily the harm caused by the exemption
00:19:39to residents, to patients, to taxpayers,
00:19:43to rural hospitals,
00:19:45and to the medically underserved public nationwide.
00:19:49In my view, formed now over decades,
00:19:52the exemption protects market distortions,
00:19:55undermines free market principles,
00:19:57limits personal freedom and choice,
00:20:00prevents normal employment negotiations,
00:20:04shields wage suppression,
00:20:05and contributes to the nationwide physician shortage.
00:20:09The Match is, and always has been,
00:20:12operated by hospitals for hospitals.
00:20:16It assigns each resident to a single program
00:20:19for the duration of residency.
00:20:21The system, including an unspoken ban on transfers,
00:20:26traps the resident there in that position
00:20:28for three to five years.
00:20:30Residents are not free to leave,
00:20:32even in cases of unsafe working conditions,
00:20:36inadequate pay,
00:20:38incompatible supervisors,
00:20:40or a family or medical emergency,
00:20:43or simply changes in personal preference.
00:20:46Anyone who leaves or is terminated
00:20:49is blacklisted and denied a position anywhere.
00:20:53There are very few second chances.
00:20:56There is no freedom
00:20:57and no flexibility in the system.
00:20:59Residents who leave their program
00:21:02generally lose their entire career in medicine.
00:21:05Their entire career in medicine.
00:21:09Correspondingly,
00:21:10taxpayers generally lose their entire investment
00:21:13in that resident.
00:21:15Medicare pays hospitals $150,000 to $180,000 annually
00:21:19for each one.
00:21:21And the public loses someone
00:21:23who would otherwise help reduce the physician shortage.
00:21:26That was not a sustainable system 20 years ago
00:21:30and is even less sustainable now.
00:21:33These were the anti-competitive restraints
00:21:37we challenged in the 2002 Jung case.
00:21:40We won the opening rounds
00:21:42and the judge ruled our claims viable
00:21:44under the Sherman Act.
00:21:46Faced with the loss of lucrative cheap labor,
00:21:49the hospitals turned to Congress.
00:21:51In 2004,
00:21:53they were quietly given an exemption
00:21:55at the expense of residents.
00:21:58It happened without notice,
00:22:00without hearings,
00:22:02without public debate,
00:22:04without transparency,
00:22:05and without meaningful consideration
00:22:07of the harm that would result.
00:22:10The exemption has now perpetuated the match's harm
00:22:13for another 20 years.
00:22:15That harm caused from lack of competition
00:22:19includes artificially suppressed wages for residents,
00:22:23long work hours dangerous to patients,
00:22:27wasted taxpayer funds,
00:22:29disadvantaged recruiting for rural programs,
00:22:33and a worsening nationwide physician shortage.
00:22:36The Jung case did not stand alone in its conclusions.
00:22:40Independent experts and studies
00:22:42have corroborated our conclusions.
00:22:44Repealing the 2004 exemption
00:22:48would not dismantle the match
00:22:50or decide its legal merits.
00:22:53It would simply restore the authority of courts
00:22:55to examine those merits fully and fairly.
00:23:00The hospitals may present their justifications in court
00:23:03and attempt to prove them.
00:23:05Or they may simply reform on their own
00:23:08when faced with standard antitrust liability.
00:23:11In my view, this is a watershed opportunity
00:23:14for Congress to reaffirm core American values
00:23:19of free competition, individual opportunity,
00:23:24fiscal responsibility, and legal accountability.
00:23:28Based on my experience in the Jung litigation
00:23:30and my daily experience with the ongoing harm
00:23:35of the match exemption,
00:23:36I strongly support repeal for the benefit of residents,
00:23:41patients, taxpayers, rural hospitals,
00:23:45and the general public.
00:23:47I look forward to any questions you may have.
00:23:49Thank you, Mr. Merrick.
00:23:50Mr. Miller, you may begin.
00:23:51Thank you, Chairman Fitzgerald,
00:23:55Ranking Member Nadler,
00:23:57and members of the subcommittee
00:23:58for the opportunity to testify today
00:24:00on the medical residency antitrust exemption
00:24:04and more generally
00:24:05on competition policy considerations
00:24:07involving physician licensing.
00:24:09One version or another
00:24:11of the so-called match mechanism
00:24:12for assigning graduating medical students
00:24:14to resident physician programs
00:24:16has been around for over 70 years.
00:24:18Today's hearing considers whether to thaw
00:24:21what was essentially frozen
00:24:23in competition law terms over 20 years ago
00:24:26by virtue of an unusual legislative exemption
00:24:29from antitrust liability for the program
00:24:31amid ongoing litigation
00:24:33with no debate and little explanation.
00:24:36Such exemptions are rarely granted.
00:24:39They are disfavored and construed narrowly by the courts.
00:24:42They usually reflect the efforts of power and privilege
00:24:45to gain or preserve special commercial advantages.
00:24:48Most limited antitrust exemptions
00:24:50also presume other regulatory mechanisms
00:24:53to monitor and police anti-competitive aspects
00:24:56of the activities otherwise protected.
00:24:59Early discovery and initial rulings
00:25:01in that older class action litigation
00:25:03concerning the match program
00:25:04provided evidence of serious problems.
00:25:07Absent the sweeping statutory exemption,
00:25:10further litigation under rule of reason analysis
00:25:13would have helped assess the net competitive effects
00:25:16of the match program at that time
00:25:18or even later as its practices evolved
00:25:20and then assessed the likelihood
00:25:23of less restrictive alternatives.
00:25:25At a minimum, this subcommittee
00:25:26in the current Congress
00:25:27should seriously consider ways to limit,
00:25:29if not repeal, the current antitrust exemption
00:25:32and it certainly should review it extensively
00:25:35for the first time in over 20 years.
00:25:37My written testimony recognizes
00:25:39that the likely competition problems
00:25:41come not from the mathematical elegance
00:25:44and ingenuity of the match algorithm per se.
00:25:47They derive rather from the program's related assembly
00:25:50of mutually reinforcing levers of market power
00:25:53that attach one-sided conditions to it.
00:25:56The match program may do an excellent job
00:25:59in solving the wrong problem.
00:26:01How to fix selection timing problems
00:26:03in a resident market monopsony
00:26:06that the program only strengthens.
00:26:08The matching process delivers efficient sorting
00:26:12of bounded preferences, finality,
00:26:15and fewer unfilled positions
00:26:16when it operates as described.
00:26:19There's some question about that.
00:26:20The main drawbacks tied to older legal objections
00:26:23appear to be the vastly unequal bargaining power,
00:26:27the wage suppression and compression,
00:26:29and onerous working conditions for residents
00:26:31that the program's interrelated rules
00:26:33and practices sustain.
00:26:34Reduced labor market competition
00:26:37reduces the quality, availability,
00:26:40and value of health care services.
00:26:42I suggest an initial set of incremental changes,
00:26:45far from original on my part,
00:26:47that could improve competition
00:26:49within a reform match program
00:26:51rather than displace it completely.
00:26:53They might be added as conditions
00:26:54to retain the current antitrust exemption,
00:26:57inserted within a newly granted more narrow one,
00:27:00or adopted to minimize new legal liabilities.
00:27:03However, a singular focus on antitrust law
00:27:06will not solve all the problems
00:27:07of physician labor markets,
00:27:09let alone the larger issues of cost, quality,
00:27:12and access throughout our overall health care system.
00:27:14Policymakers should consider
00:27:16a broader inventory of tools and levers
00:27:18that can shape not just the initial supply
00:27:20of new physicians,
00:27:21but also facilitate how all health care providers
00:27:24can deliver more accessible, effective,
00:27:26and affordable care.
00:27:28Most policy interventions aimed
00:27:30at rebalancing competitive forces
00:27:31within physician labor markets
00:27:33face resistance not only
00:27:35from the powerful interest groups
00:27:36benefiting from the longstanding status quo,
00:27:39they also can trigger fears of disruption
00:27:41and timing mismatches
00:27:43in any transition toward alternative mechanisms.
00:27:46A different set of policy conflicts
00:27:48may arise from federalism concerns.
00:27:50States have traditionally been viewed
00:27:51as the natural constitutional stewards
00:27:53of physician licensing
00:27:55as part of their traditional police powers.
00:27:57But neither types of concerns
00:27:59are irreconcilable roadblocks
00:28:01to reasonable reforms
00:28:02that are calibrated and phased in carefully.
00:28:05Although some states have led on this front,
00:28:08not enough of them have done so
00:28:09as rapidly and thoroughly
00:28:11as they might and should.
00:28:13Hence arguments for an increased
00:28:14federal government role
00:28:15and at least providing stronger incentives to do so.
00:28:19The MATCH program's nationwide competition
00:28:21for resident positions
00:28:22was only an early sign
00:28:24of eroding geographical boundaries
00:28:26for health care labor markets.
00:28:28The issue is not whether Congress
00:28:29and the federal government
00:28:30have the power to be more assertive,
00:28:32but whether they decide to do so
00:28:34absent more effective state-level actions.
00:28:37The potential policy reforms
00:28:38and tools are available
00:28:40if the necessary political will
00:28:41to promote and adopt them develops.
00:28:44In the meantime,
00:28:45we should expect the more immediate resort
00:28:47of recent years
00:28:48to leaving such matters
00:28:49to litigation, regulation,
00:28:51and other administrative actions.
00:28:52Not coincidentally,
00:28:54this subcommittee's area of jurisdiction.
00:28:58Thank you, Mr. Miller.
00:28:59Dr. Feldman, you may now begin.
00:29:01Chair Fitzgerald,
00:29:02Ranking Member Nadler,
00:29:03members of the committee,
00:29:04I'm honored to talk with you all today
00:29:07about medical training
00:29:08in the United States
00:29:09and more broadly about ways
00:29:10of strengthening our health care system
00:29:12to improve outcomes for patients.
00:29:15The MATCH,
00:29:16the subject of our hearing today,
00:29:18is the mechanism
00:29:19by which residency applicants
00:29:21are paired with hospitals
00:29:22for their training
00:29:22after medical school.
00:29:24For the past two decades,
00:29:26this mechanism
00:29:26has been protected
00:29:28by an exemption
00:29:28from antitrust violations.
00:29:30In March of this year,
00:29:31the subcommittee sent letters
00:29:32to several stakeholders
00:29:33requesting information
00:29:35they consider
00:29:35as they consider potential removal
00:29:38of this longstanding exemption.
00:29:40The two central arguments
00:29:41of those letters
00:29:42are that the residency match
00:29:44has created a bottleneck
00:29:45resulting in physician shortages
00:29:47in that it has depressed
00:29:48resident salaries.
00:29:50The goals of this subcommittee
00:29:52as expressed in those letters
00:29:53of increasing physician workforce
00:29:55and ensuring adequate compensation
00:29:57for residents
00:29:58are laudable
00:29:59and ought to be pursued.
00:30:01And the MATCH certainly
00:30:02has its downsides,
00:30:03but in my view,
00:30:04eliminating the MATCH
00:30:05would not necessarily accomplish
00:30:07the goals set forth
00:30:08by this committee.
00:30:09Let's start with physician shortages,
00:30:11which are expected to increase
00:30:13from 37,000 in 2021
00:30:15to over 80,000 in 2036.
00:30:19The problem is not
00:30:20that a large number
00:30:21of residency spots
00:30:22go unfilled each year.
00:30:23In fact, in 2024,
00:30:2599.6% of the more
00:30:27than 40,000 advertised positions
00:30:29were filled.
00:30:31Instead, the problem
00:30:32is that more residency spots
00:30:33are needed.
00:30:34This in turn
00:30:35would require additional funding
00:30:36for Medicare and Medicaid
00:30:37and the hospitals themselves.
00:30:39But the MATCH per se
00:30:40is not the bottleneck
00:30:42in the physician shortage.
00:30:45Beyond creating
00:30:46and funding more positions,
00:30:48lawmakers should also identify
00:30:49new ways
00:30:50of bringing international
00:30:51medical graduates
00:30:52into our workforce,
00:30:53as many states are now doing.
00:30:55Numerous sectors
00:30:56in the U.S. economy,
00:30:57from tech
00:30:58to financial services,
00:31:00benefit from the infusion
00:31:01of highly skilled workers
00:31:02who train abroad.
00:31:03Why should medicine
00:31:04be different?
00:31:06On the question
00:31:07of residency wages,
00:31:08I can tell you firsthand
00:31:10that living on a
00:31:12residency salary
00:31:13while trying to pay off
00:31:14student loans
00:31:14and start a family
00:31:15was challenging.
00:31:17But it's not clear
00:31:18that eliminating the MATCH
00:31:20would yield higher salaries
00:31:22across the board
00:31:22without disruption.
00:31:24There are certainly
00:31:25other ways
00:31:25of improving wages.
00:31:27Resident unionization,
00:31:29as Chair Nadler mentioned,
00:31:31has accelerated
00:31:32in recent years
00:31:32with 20% of all residents
00:31:33now unionized,
00:31:34including at my own institution.
00:31:37Through collective bargaining,
00:31:39residents have successfully
00:31:39negotiated wage increases,
00:31:41housing allowances,
00:31:42increased educational time,
00:31:44and numerous other benefits
00:31:45that help improve
00:31:46their quality of life
00:31:47and educational experience.
00:31:49Residency programs
00:31:51can and should
00:31:52offer more,
00:31:54and Congress
00:31:55could facilitate this
00:31:56in any number of ways
00:31:57beyond actions
00:31:59to eliminate the MATCH,
00:32:00from increasing CMS funding
00:32:01of residency programs
00:32:02and supporting the right
00:32:03to unionize
00:32:04to setting minimum salary floors
00:32:06and implementing
00:32:07more generous
00:32:07loan forgiveness programs.
00:32:09I want to close
00:32:11by noting
00:32:12that some of the biggest
00:32:13threats to medical education
00:32:14and indeed
00:32:15to the very practice
00:32:16of medicine
00:32:17in the United States
00:32:18come not
00:32:19from the residency match,
00:32:21but from efforts
00:32:22by the current administration
00:32:23to undermine
00:32:24the very fabric
00:32:26of scientific discovery.
00:32:28Foundational research
00:32:29funded by the NIH
00:32:31and NSF
00:32:32form the core
00:32:33of what medical students
00:32:35and residents learn
00:32:36during their training.
00:32:37Future groundbreaking cures
00:32:40that residents
00:32:41of today
00:32:41will prescribe
00:32:42to patients of tomorrow
00:32:44depend on a robust NIH
00:32:46and NSF for discovery,
00:32:47a well-staffed FDA
00:32:49for evaluation,
00:32:50and strong public players,
00:32:52including Medicare
00:32:53and Medicaid,
00:32:54for access.
00:32:56Yet the current administration
00:32:57seems bent
00:32:58on gutting
00:32:58these institutions.
00:33:00The administration's
00:33:01budget blueprint
00:33:02proposes cuts
00:33:02of 37%
00:33:04to the NIH
00:33:05and more than 50%
00:33:06to the NSF.
00:33:08Over 700 NIH grants
00:33:10accounting for
00:33:11close to $2 billion
00:33:12in funding
00:33:13have been terminated
00:33:14this year,
00:33:15and more than half
00:33:16of these canceled grants
00:33:17are for medical schools
00:33:18and hospitals,
00:33:20a large number of which,
00:33:21by the way,
00:33:21are for clinical trials
00:33:23that are investigating
00:33:26diseases like cancer,
00:33:28psychiatric illness,
00:33:29HIV, and COVID.
00:33:31At the FDA,
00:33:31more than 3,500 layoffs
00:33:33have already begun
00:33:34slowing review times
00:33:36of new drugs.
00:33:38An entire office
00:33:39tasked with developing
00:33:40product-specific guidance
00:33:41and facilitating entry
00:33:43of low-cost generic drugs
00:33:44to keep prices down
00:33:45for patients
00:33:46was terminated.
00:33:48Proposed cuts to Medicaid,
00:33:49according to the CBO,
00:33:51will leave 8 million
00:33:52beneficiaries uninsured,
00:33:53and these cuts
00:33:54will have disproportionate
00:33:55effects on hospitals
00:33:56that already struggle
00:33:56to cover the costs
00:33:57of uncompensated care.
00:33:59This committee has begun
00:34:00asking hard questions
00:34:01about medical training
00:34:01in the United States,
00:34:03which is good.
00:34:03Mr. Chairman,
00:34:03can I have regular order,
00:34:04please?
00:34:05Yeah.
00:34:06Mr. Feldman,
00:34:06can you wrap up
00:34:07your comments, please?
00:34:08Yep.
00:34:09I would encourage you
00:34:10all to widen
00:34:11the scope of assessment
00:34:12and consider an array
00:34:13of tools for addressing
00:34:13physician shortages,
00:34:15residency well-being,
00:34:16and larger threats
00:34:16to science
00:34:17in our health care system.
00:34:18Thank you, Dr. Feldman.
00:34:19We will now proceed
00:34:19under the five-minute rule
00:34:20with questions.
00:34:21I'll recognize the gentleman
00:34:22from California,
00:34:23Mr. Eisen,
00:34:23for five minutes.
00:34:25Thank you, Mr. Chairman.
00:34:27Dr. Feldman,
00:34:28I love it.
00:34:28that you just had to go
00:34:30for a minute and 25 seconds
00:34:33on a rant against Trump
00:34:34for 100 days
00:34:35as though what we're hearing
00:34:37about today
00:34:38had anything to do with it
00:34:39or that any real difference
00:34:41has occurred in 100 days
00:34:43to the root causes
00:34:45of not having enough physicians
00:34:47or that this didn't happen
00:34:49during the previous four years.
00:34:51The least you could have done,
00:34:52of course,
00:34:52is talk about his first four years
00:34:54to give him at least a chance
00:34:55to have had some impact,
00:34:57but you chose not to.
00:34:58I heard you say money, money, money.
00:35:02I think I'll go to Mr. Merrick.
00:35:06You spend a fortune
00:35:08to become a doctor.
00:35:10Then your system
00:35:11puts you into slave wages
00:35:13while the federal government
00:35:15is subsidizing the hospitals
00:35:17so they effectively have you
00:35:18for less than free.
00:35:20Is that a fair assessment
00:35:21of how we create residents?
00:35:23The federal government
00:35:25already pays more
00:35:26than you receive.
00:35:26Isn't that true
00:35:27if you're a resident?
00:35:32Yes, I agree with that.
00:35:33The government pays an average
00:35:34between $150,000 and $180,000
00:35:37a year per resident
00:35:38and they convey about $65,000
00:35:40to each resident.
00:35:41Okay, so we've all heard
00:35:43about the rough hours
00:35:45that doctors go through
00:35:47and sort of part of this test,
00:35:50sort of like Navy SEALs
00:35:52and Rangers, you know,
00:35:53you've got to stay up
00:35:54for a couple of days
00:35:54to prove you could
00:35:55in the future.
00:35:57I'm okay with that.
00:35:58I understand the stressing.
00:36:00What I don't understand
00:36:01is how we can have
00:36:02a projected shortage
00:36:04under a monopoly
00:36:06that was supposed to allocate
00:36:08and guarantee sufficiency
00:36:10and then Dr. Feldman comes in
00:36:14and tells us the problem is
00:36:15that paying more to the hospital
00:36:17than they actually spend
00:36:19while getting a doctor for free
00:36:21who they bill out
00:36:23is somehow the fault
00:36:25of an administration
00:36:26that's been here
00:36:27for 100 days.
00:36:28Mr. Miller,
00:36:29am I misunderstanding
00:36:31what I'm hearing?
00:36:32No, but let me add
00:36:34something else to this.
00:36:34I mean, it's worse.
00:36:35I was working on this
00:36:36about 10 years ago.
00:36:37There's no correlation
00:36:38between the federal funding
00:36:41and the supply of physicians.
00:36:43Now, we could change the rules
00:36:45and make it more targeted
00:36:46to incentivize the expansion
00:36:49of certain types of physicians
00:36:51or other areas,
00:36:52but the money goes in.
00:36:53It goes to certain favored parties
00:36:56over a period of time.
00:36:57It's not allocated
00:36:58on a need basis,
00:36:59so it's just more sloshing
00:37:02around the funding,
00:37:03which is unrelated
00:37:04to what we say
00:37:04we're trying to accomplish.
00:37:06Dr. Lin, Dr. Feldman
00:37:09seemed to think
00:37:10that unions were the answer
00:37:11while maintaining
00:37:12an antitrust exemption.
00:37:15Do you see that as the answer,
00:37:17or do you see
00:37:18that a free market,
00:37:19or at least a partial free market,
00:37:21being restored
00:37:22could help with this problem?
00:37:25I would say the latter,
00:37:27Congressman.
00:37:28I think a union
00:37:30is not an answer
00:37:32for rural community,
00:37:34especially small community hospitals.
00:37:36If you look at the current
00:37:37financial situation,
00:37:40we have hospitals closing,
00:37:42nursing homes closing
00:37:43because of the financial stress,
00:37:45and if you increase
00:37:46the wages artificially like that
00:37:49with union,
00:37:51I think that would be detrimental,
00:37:53and that would be a hindrance
00:37:54to our future.
00:37:55Now, Dr. Lin,
00:37:56I also serve over the years
00:37:58on the Immigration Subcommittee,
00:37:59so one thing I understand
00:38:01is that we have
00:38:02a minuscule allocation
00:38:03to rural of foreigners
00:38:06able to get visas.
00:38:08Is that something
00:38:09that you would also seek
00:38:11to try to increase
00:38:13that number
00:38:13since obviously
00:38:14there are more
00:38:15foreign-born doctors,
00:38:16some of whom
00:38:17have been U.S. educated,
00:38:19who are looking
00:38:19for those opportunities
00:38:22when they leave
00:38:22than we allocate slots?
00:38:24It's a quite small number,
00:38:25correct?
00:38:26That's correct.
00:38:28Okay.
00:38:29Mr. Merrick,
00:38:30your case was dismissed
00:38:32because Hillary Clinton
00:38:34and the late Senator Ted Kennedy
00:38:37got together
00:38:38and slipped it in there,
00:38:39and that's where we are.
00:38:41What, if any,
00:38:43improvement have you seen
00:38:44as a result
00:38:45of this antitrust exemption
00:38:47in any part
00:38:48of the process?
00:38:50Well, shortly after
00:38:51we filed the case,
00:38:53I believe that the hospital
00:38:54saw the long,
00:38:56dangerous work hours
00:38:57as their Achilles heel,
00:38:58and so they supposedly
00:39:02voluntarily adopted
00:39:0380-hour work.
00:39:06Okay.
00:39:06Well, Mr. Miller,
00:39:08let me,
00:39:08so I'll take that
00:39:09as some good,
00:39:10only 80 hours.
00:39:12Mr. Miller,
00:39:13my remaining time,
00:39:16antitrust exemption
00:39:17for the organization
00:39:18that does this work
00:39:20versus the effective antitrust
00:39:23that goes to the hospital.
00:39:24Should we make it clear
00:39:25that the selection process
00:39:27enjoys an antitrust,
00:39:28but all other aspects
00:39:30of the process
00:39:30should never have enjoyed
00:39:32antitrust exemption?
00:39:34Yeah, it was a very
00:39:35sweeping exemption
00:39:36because basically
00:39:37it also prevented
00:39:39any evidence
00:39:40related to this
00:39:41to be used
00:39:41in collateral actions,
00:39:43so certainly it should be
00:39:44set as narrowly
00:39:46as possible
00:39:46at a minimum.
00:39:49Thank you, Mr. Chairman.
00:39:49I yield back.
00:39:50Gentleman yields back.
00:39:51Now I recognize
00:39:51the ranking member
00:39:52for five minutes.
00:39:53Thank you, Mr. Chairman.
00:39:54Dr. Feldman,
00:39:55since you've been
00:39:56attacked by several
00:39:57of their witnesses,
00:39:58is there anything
00:39:59you'd like to say
00:39:59in response?
00:40:01The one thing
00:40:02I would like to say
00:40:03is that my comment
00:40:04about more funding
00:40:06is about funding
00:40:07more positions.
00:40:07If we're concerned
00:40:08about a residency
00:40:09shortage,
00:40:11if we're concerned
00:40:12about a physician shortage,
00:40:13we need more positions,
00:40:14and the way to do that
00:40:15is by more funding.
00:40:18Dr. Feldman,
00:40:18in an April executive order,
00:40:20the Trump administration
00:40:21once again took aim
00:40:22at institutions
00:40:23of higher education.
00:40:24This time,
00:40:25it was focused
00:40:25on the administration's
00:40:27crusade against DEI.
00:40:29Can you explain
00:40:30whether there is
00:40:30a value in accounting
00:40:31for diversity
00:40:32in the provision
00:40:34of medical care?
00:40:34I do think there's
00:40:38value in accounting
00:40:39for diversity
00:40:39in the selection
00:40:41of medical students
00:40:43and residents.
00:40:44I think that having
00:40:45classes with
00:40:47a diverse set
00:40:48of interests
00:40:49and backgrounds
00:40:49can help strengthen
00:40:50the medical care
00:40:53that doctors provide
00:40:55and can strengthen
00:40:56residency classes.
00:40:59Dr. Feldman,
00:41:00you've seen the match
00:41:00from both the applicant
00:41:01and program sides.
00:41:03What was the experience
00:41:04that you and your peers
00:41:05had with the match
00:41:06as applicants?
00:41:07And what concerns you
00:41:08about the prospect
00:41:09of eliminating the match?
00:41:13The experience
00:41:14with the match
00:41:15is that you apply
00:41:16to a bunch of programs,
00:41:18you interview,
00:41:19you rank the programs
00:41:22that you like the best
00:41:23and you place
00:41:23into the one
00:41:24that also ranks you.
00:41:29It is,
00:41:31the match
00:41:32is not without
00:41:33its downsides,
00:41:35as I've said,
00:41:36but I would worry
00:41:37that eliminating the match
00:41:38would create
00:41:39a kind of free-for-all
00:41:41that would make it
00:41:42harder for applicants.
00:41:45This idea that you mentioned
00:41:47about exploding offers
00:41:48and being pushed
00:41:51to commit early
00:41:53to one program
00:41:55without actually looking
00:41:56at all of the programs
00:41:57I think would ultimately
00:41:58be problematic
00:41:59for residents,
00:42:02for applicants.
00:42:04Drawing upon your experience,
00:42:06Dr. Feldman,
00:42:07with the FDA
00:42:07and the pharmaceutical industry,
00:42:10what anti-competitive practices
00:42:11have you encountered
00:42:12that impact most
00:42:14the public's health
00:42:15and well-being?
00:42:15I see lots
00:42:19of anti-competitive practices
00:42:21in the pharmaceutical industry.
00:42:23I'll give you one example
00:42:24that's very close
00:42:26to research
00:42:27that I've conducted
00:42:29with our team
00:42:30at Harvard Medical School.
00:42:32We see brand-name
00:42:34pharmaceutical companies
00:42:36obtaining patents
00:42:37that limit
00:42:38generic competition,
00:42:39that limit the entrance
00:42:40of low-cost generics
00:42:41onto the market.
00:42:43More competition
00:42:44is the way
00:42:45that we bring down
00:42:46drug prices.
00:42:46How can the patent
00:42:47limit the generic?
00:42:49Well, the companies
00:42:51list the patents
00:42:51with the FDA
00:42:52in what's called
00:42:52the Orange Book
00:42:53and the generic entrance
00:42:55can't come onto the market
00:42:56until those patents expire
00:42:57or they challenge them
00:42:58in court.
00:42:59And so we see
00:43:01anti-competitive practices
00:43:02all of the time
00:43:03from pharmaceutical companies.
00:43:05We see anti-competitive practices
00:43:06from PBMs
00:43:07throughout the
00:43:08pharmaceutical supply chain.
00:43:10and I would love
00:43:11for this subcommittee
00:43:13to be focused
00:43:14on those issues.
00:43:16Research funding
00:43:17is being cut
00:43:17for a variety of reasons,
00:43:19including administration
00:43:20concerns about
00:43:21a range of issues
00:43:22unrelated to the research itself.
00:43:24Against this
00:43:24undiscriminating approach
00:43:25to cost-cutting,
00:43:27for context,
00:43:27please explain
00:43:28the process
00:43:28by which these grants
00:43:29are made in the first place,
00:43:30Dr. Feldman.
00:43:32The process
00:43:32by which NIH grants
00:43:33are made?
00:43:34No.
00:43:35Well, we spend
00:43:37many, many hours
00:43:37writing grant applications.
00:43:38We submit them
00:43:39to the NIH.
00:43:40They go to
00:43:41study sections
00:43:42for evaluation,
00:43:43peer review,
00:43:44and the grants
00:43:46that have a certain score
00:43:47end up getting funded.
00:43:49It's an arduous process.
00:43:51It makes for good science
00:43:53because you get
00:43:54the best applications
00:43:55that are being selected.
00:43:57And I worry a lot
00:43:58about actions
00:43:59that are being taken now
00:43:59to cut funding
00:44:02from the NIH.
00:44:03As a researcher
00:44:04who receives NIH funding,
00:44:06what are your concerns
00:44:07about how freezing
00:44:07or terminating grants
00:44:08will affect
00:44:09the research enterprise
00:44:10and on researcher choices?
00:44:13I have already seen
00:44:16the chilling effect
00:44:17that these cuts have had.
00:44:19I've had conversations
00:44:19with colleagues
00:44:20who are in academia
00:44:22and have thought
00:44:23about going into industry
00:44:25because of uncertainties
00:44:26around getting NIH funding.
00:44:28The NIH funds
00:44:29some of the riskiest research,
00:44:31also the highest reward research,
00:44:33in our country.
00:44:33And I think these cuts
00:44:35are going to be devastating
00:44:37if they persist
00:44:37for breakthrough therapies.
00:44:40And finally,
00:44:42the administration
00:44:42has been doing everything
00:44:45it can
00:44:46to deport
00:44:46foreign students
00:44:48and researchers.
00:44:51To what extent
00:44:52do you think
00:44:53what I just said
00:44:53is accurate
00:44:54and how will this affect
00:44:55medical care?
00:44:57I'll comment
00:45:00on the latter question.
00:45:02I think that
00:45:03deporting
00:45:04international students,
00:45:06that making it hard
00:45:07for international students
00:45:08to learn
00:45:09in the United States
00:45:10and practice
00:45:10in the United States
00:45:11will only contribute
00:45:12to the physician shortage.
00:45:14I yield back.
00:45:15Gentleman yields back.
00:45:16Now recognize
00:45:16the gentleman
00:45:17from Virginia
00:45:17for five minutes.
00:45:19Dr. Lin,
00:45:20the ACGME
00:45:21leverages
00:45:22its accreditation monopoly
00:45:24to impose DEI hiring requirements
00:45:26on medical residency programs.
00:45:29According to ACGME
00:45:30program requirement IC,
00:45:32programs must hire
00:45:33a diverse
00:45:33and inclusive workforce.
00:45:36And we heard
00:45:36Dr. Feldman
00:45:37try and justify that.
00:45:38But race-based hiring requirements
00:45:40are against federal law.
00:45:42And the Supreme Court
00:45:43was clear
00:45:43in Students for Fair Admission
00:45:45versus Harvard
00:45:45that educational institutions
00:45:47cannot base
00:45:48admission on race either.
00:45:50American health care
00:45:51patients suffer
00:45:52when residency programs
00:45:54focus on gender
00:45:55or skin color
00:45:56instead of a resident's competency.
00:45:59Do you think
00:45:59the ACGME
00:46:00should be in the business
00:46:01of forcing programs
00:46:02to hire residents
00:46:03based on race or gender
00:46:04instead of merit?
00:46:08Congressman,
00:46:09I would tell you
00:46:10that, of course,
00:46:12personally,
00:46:12I would think
00:46:14that they should not
00:46:15impose their will
00:46:16on individual programs.
00:46:18Some good news,
00:46:19as of May 9th,
00:46:20the ACGME
00:46:22has suspended
00:46:23their common standard
00:46:25for DEI practices.
00:46:28And I remain to be seen
00:46:29how they're going to
00:46:30change their standard.
00:46:31So we just got the email
00:46:33last week.
00:46:35That's good news.
00:46:37Mr. Miller,
00:46:38the medical residency market
00:46:39is stagnant
00:46:40with low wages
00:46:41for residents
00:46:42and worse outcomes
00:46:43for patients.
00:46:43It also functions
00:46:44as a bottleneck
00:46:45that contributes
00:46:45to America's doctor shortage.
00:46:47would removing
00:46:49the medical residency
00:46:50antitrust exemption
00:46:51make the market
00:46:51more competitive?
00:46:55I think we need
00:46:56to parse a couple
00:46:57of different parts
00:46:58to this.
00:47:01The supply line
00:47:02is a little more complex
00:47:04than just removing
00:47:04the antitrust exemption.
00:47:06I think it could create
00:47:08some opportunities,
00:47:09but primarily
00:47:10in terms of improving
00:47:11the overall
00:47:11working conditions
00:47:12and the quality
00:47:13of the health care
00:47:15workforce we produce.
00:47:16There are a broader
00:47:18set of tools
00:47:19than that alone.
00:47:20There's some ambiguity
00:47:21over exactly
00:47:22what's driving
00:47:23the production line.
00:47:25I'd suggest
00:47:26we need a bigger basket
00:47:27than simply
00:47:28this tool alone.
00:47:29It'll help,
00:47:30but I would not
00:47:31exaggerate its effects.
00:47:34As you know,
00:47:35to receive a physician's
00:47:36license,
00:47:37doctors are required
00:47:38to participate
00:47:38in an ACGME
00:47:40accredited residency.
00:47:42Traditionally,
00:47:43state licensing requirements
00:47:44that facilitate
00:47:45anti-competitive conduct
00:47:46are shielded
00:47:47from antitrust law
00:47:48under the state action
00:47:49immunity doctrine.
00:47:50What issues do you see
00:47:51with state medical
00:47:52licensing boards
00:47:53rubber stamping
00:47:55monopolistic conduct
00:47:56like that of the ACGME?
00:47:57Okay.
00:47:58You're opening up
00:47:59a different basket.
00:48:00Yep.
00:48:00That's okay.
00:48:02Certainly,
00:48:04many state actions,
00:48:08that can be,
00:48:08there's real state action
00:48:09and then there's kind of
00:48:10periphery state action.
00:48:12Certainly encourage
00:48:13an anti-competitive atmosphere
00:48:15in state physician markets.
00:48:19In general,
00:48:21they are being carved back,
00:48:24but not as much
00:48:25as they should.
00:48:26We've eroded
00:48:26some of the excesses
00:48:28of the state action doctrine
00:48:29in terms of having
00:48:30a clear articulation
00:48:31of state policy
00:48:32and closer supervision.
00:48:34That's a process
00:48:35in which we're moving
00:48:37slower than we should
00:48:38on that front.
00:48:40States certainly could
00:48:41do a better job
00:48:42in this regard
00:48:43and there are,
00:48:44as I've suggested,
00:48:45other federal levers
00:48:46to give them
00:48:48some encouragement
00:48:48to do so.
00:48:50But any individual state
00:48:52should be responsible
00:48:53for its medical markets
00:48:54and the results
00:48:55it produces
00:48:56and I think the process
00:48:58is fairly disappointing
00:48:59thus far.
00:49:00Some states have led the way,
00:49:01but it's a handful,
00:49:03whether it's licensing
00:49:04of foreign physicians,
00:49:06alternative ways
00:49:06to expand the workforce.
00:49:08We've got to go
00:49:08a lot further
00:49:09on that front end
00:49:10reciprocity.
00:49:11We had to have
00:49:12the extremes
00:49:12of the COVID situation
00:49:14to begin to find out
00:49:15how we could loosen things up
00:49:16when we're really desperate.
00:49:17We should do that
00:49:18more often
00:49:18as a general rule
00:49:19and we've got a long way
00:49:20to go in order
00:49:21to expand the overall
00:49:22supply of health care,
00:49:24not just kind of
00:49:25the newly minted physicians.
00:49:28Staying with the ACGME,
00:49:29medical residency programs
00:49:31can only receive
00:49:31federal funding
00:49:32through Medicare
00:49:33and Medicaid
00:49:33if they're accredited
00:49:34by the ACGME.
00:49:35As a result,
00:49:37the ACGME
00:49:37essentially controls
00:49:38the on and off switch
00:49:39for billions of dollars
00:49:40in federal funding.
00:49:42With that power,
00:49:42the ACGME has set
00:49:43accreditation requirements
00:49:45that are not consistent
00:49:46with the federal government's priorities
00:49:47like radical DEI hiring requirements
00:49:49and wasteful administrative burdens.
00:49:51How would creating
00:49:52an alternative certification process
00:49:54for Medicare and Medicaid funding
00:49:55loosen the ACGME's power
00:49:57over the medical residency market?
00:49:59There's always room
00:50:01for competition
00:50:01even in government franchises
00:50:04and certainly there are ways
00:50:05to think of other forms
00:50:07of certification
00:50:08independently driven
00:50:10through the private sector
00:50:11which could be recognized
00:50:12as alternative sources
00:50:13of that supply.
00:50:14That would require
00:50:15the federal government
00:50:16to step forward though
00:50:17and take more control
00:50:18of that situation
00:50:19or states also
00:50:20in their own determination
00:50:21of accreditation
00:50:22deciding they need
00:50:23additional sources.
00:50:24When you have a shortage
00:50:26of supply
00:50:26and you only have one supplier
00:50:28it suggests time
00:50:29to either find
00:50:30some alternatives
00:50:31or say to the person
00:50:32let's make some adjustments.
00:50:34Thank you Mr. Chairman
00:50:35I yield back.
00:50:36Gentleman yields back
00:50:37now recognize
00:50:38the gentleman from Georgia
00:50:39for five minutes.
00:50:40Thank you Mr. Chairman.
00:50:42The medical match
00:50:43is not perfect
00:50:44but let's be honest
00:50:45about why we are having
00:50:46this hearing today.
00:50:48For House Republicans
00:50:49this is a hearing
00:50:51this hearing is an outgrowth
00:50:53of MAGA Republican
00:50:55ongoing attacks
00:50:57on science and research.
00:50:59President Trump
00:51:00and the Republican
00:51:01controlled Congress
00:51:02have made massive cuts
00:51:04to medical research programs
00:51:06at universities
00:51:07and at the federal level
00:51:09including research
00:51:10into things like
00:51:11women's health
00:51:12racial disparities
00:51:14and chronic diseases.
00:51:16I'm proud that
00:51:17the Centers for Disease Control
00:51:19and Prevention
00:51:21is headquartered
00:51:22in my hometown of Atlanta
00:51:23but the Trump administration
00:51:26already cut 2,400 jobs
00:51:28from the CDC last month
00:51:30and ended programs
00:51:32on lead poisoning
00:51:33smoking cessation
00:51:35and reproductive health.
00:51:37Now that does not make
00:51:39America healthy again
00:51:41does it Dr. Lin?
00:51:42Yes or no?
00:51:48Congressman.
00:51:49Okay so yes or no?
00:51:50I'm running out of time
00:51:52so I'm going to move on
00:51:54you don't want to answer
00:51:54that question.
00:51:56President Trump's
00:51:56latest budget calls
00:51:58for cutting CDC's funding
00:51:59by half
00:52:01and eliminating
00:52:02its chronic disease center
00:52:04entirely
00:52:05wiping out programs
00:52:07aimed at preventing
00:52:08cancer
00:52:08heart disease
00:52:10diabetes
00:52:10epilepsy
00:52:11and Alzheimer's disease
00:52:14that doesn't make
00:52:14America healthy again
00:52:16does it
00:52:16Mr. Marek?
00:52:18Yes or no?
00:52:19I don't have an answer
00:52:21for that.
00:52:21Okay well
00:52:22it's clear
00:52:23it's abundantly clear
00:52:25to most Americans
00:52:28exempting of course
00:52:30MAGA Republicans
00:52:31I guess would not
00:52:32understand.
00:52:35Now House Republicans
00:52:36are trying to jam
00:52:37through a spending bill
00:52:38that would make
00:52:39massive cuts
00:52:41to research
00:52:42as well as
00:52:42massive cuts
00:52:43to Medicaid
00:52:44ripping away
00:52:458 million Americans
00:52:47health care
00:52:47so that they can fund
00:52:48tax breaks
00:52:49for their billionaire
00:52:50buddies.
00:52:52Mr. Miller
00:52:52that does not
00:52:53make America
00:52:54healthy again
00:52:54does it?
00:52:55A lot of things
00:52:56don't make America
00:52:57healthy
00:52:57we can talk about them
00:52:59if you wish
00:52:59to have a wider range
00:53:00of hearing
00:53:00but by time
00:53:01Dr. Feldman
00:53:04international medical
00:53:05graduates
00:53:06represent a substantial
00:53:08chunk of physicians
00:53:10practicing in the United States
00:53:12you said 23%
00:53:13in your testimony
00:53:14but the Trump administration
00:53:16and House Republicans
00:53:18are trying to make it harder
00:53:19for non-citizens
00:53:21to come work
00:53:22in the United States
00:53:23how would it impact
00:53:25care in this country
00:53:26if we lost
00:53:27those international
00:53:28medical graduates?
00:53:29I think it would be
00:53:31devastating
00:53:32international medical
00:53:34graduates often serve
00:53:35in rural communities
00:53:36in primary care roles
00:53:37and they help solve
00:53:39the physician shortage
00:53:40that we're here
00:53:40to talk about today
00:53:41Yeah, that would not
00:53:42make America
00:53:43healthy again
00:53:44would it?
00:53:44It would not
00:53:45Dr. Feldman
00:53:46the Trump administration
00:53:48and Republicans
00:53:48are trying to slash
00:53:50spending
00:53:51to federal health care
00:53:52could you say more
00:53:54about why programs
00:53:55would be impacted
00:53:56if Congress
00:53:57increased funding
00:53:58for residency programs
00:54:00through the centers
00:54:01for Medicare
00:54:02and Medicaid services
00:54:04rather than trying
00:54:05to cut funding
00:54:07for those programs?
00:54:11I think that we need
00:54:12to increase funding
00:54:13because we have
00:54:15a physician shortage
00:54:15and the way to solve
00:54:16the physician shortage
00:54:17in part
00:54:18is through more positions
00:54:20the only way to have
00:54:21more positions
00:54:21is more funding
00:54:22That's common sense
00:54:23and Mr. Miller
00:54:24you're shaking your head
00:54:25no, I don't understand
00:54:27but back to Dr. Feldman
00:54:29Republicans are floating
00:54:31ideas
00:54:32are floating an idea
00:54:33that would require
00:54:34doctors to work
00:54:36even longer
00:54:37to achieve
00:54:38public interest
00:54:39loan forgiveness
00:54:40because it would not
00:54:41count the years
00:54:42of their residency
00:54:43toward the 10 year
00:54:45requirement
00:54:46Can you speak
00:54:47as to how this
00:54:49would impact
00:54:50the availability
00:54:51of care
00:54:52particularly in rural
00:54:53or underserved areas?
00:54:55If you ask
00:54:56the wrong question
00:54:57you'll get
00:54:57the wrong answer
00:54:58I'm asking Dr. Feldman
00:54:59I'll tell you
00:55:02as somebody
00:55:03who is doing
00:55:05public service
00:55:06loan forgiveness
00:55:06and who started
00:55:08paying down
00:55:09my student loans
00:55:10during residency
00:55:11there's no reason
00:55:13to push that out
00:55:15and I think
00:55:16it's a very good program
00:55:17and it's a way
00:55:18to get physicians
00:55:19into the workforce
00:55:21and I think
00:55:22it would be a bad idea
00:55:23Yeah, if Republicans
00:55:24were serious
00:55:25about making health care
00:55:28more affordable
00:55:29and more accessible
00:55:31to the American people
00:55:34there are so many things
00:55:36that we could have
00:55:37hearings about
00:55:38other than this match
00:55:41Gentleman's time
00:55:42has expired
00:55:42And I yield back
00:55:44the remainder of it
00:55:45Gentleman yields back
00:55:46Gentlewoman from Wyoming
00:55:48is recognized
00:55:49Mr. Miller
00:55:49you seemed as though
00:55:50you had something to say
00:55:51Well
00:55:53there's one view
00:55:55of the world
00:55:56which says simply
00:55:57pour more resources in
00:55:59and everything
00:56:00will work wonderfully
00:56:01Problems with our
00:56:02health care system
00:56:03are what we're getting
00:56:04out of it
00:56:05as well as what
00:56:05we're putting into it
00:56:07and so a singular focus
00:56:08on just
00:56:09adding more dollars
00:56:10for more inputs
00:56:11says nothing about
00:56:13the quality of the care
00:56:15its efficiency
00:56:16its alternative delivery
00:56:17we need to make
00:56:18lots of changes
00:56:19in a lot of things
00:56:20in order to get
00:56:21a better health care system
00:56:22It is not
00:56:23should not be solely
00:56:25focused on
00:56:25let's just have
00:56:26a lot more physicians
00:56:27and everything
00:56:28will be great
00:56:29We've tried that approach
00:56:30before
00:56:31it doesn't produce
00:56:32the results
00:56:32Now there are barriers
00:56:33to production
00:56:34of physicians
00:56:35which we can talk about
00:56:36but it isn't solved
00:56:38simply by increasing
00:56:39federal funding
00:56:40Okay, I appreciate
00:56:41that comment
00:56:42Several of you
00:56:43have testified
00:56:44that the match system
00:56:45harms rural hospitals
00:56:47I'm from Wyoming
00:56:48which is a very rural state
00:56:51dealing with many challenges
00:56:53in its ability
00:56:54to provide health care services
00:56:56and with barriers
00:56:57related to financing
00:56:58transportation and access
00:57:00Dr. Lynn
00:57:02is it difficult
00:57:02for rural hospitals
00:57:03to meet ACGME's
00:57:05accreditation requirements?
00:57:08It is challenging
00:57:10Congresswoman
00:57:11What are those challenges?
00:57:14Some of the challenges
00:57:15are some of the standards
00:57:16that they put in place
00:57:17that for example
00:57:19distance radius
00:57:21obviously if you look
00:57:23at rural America
00:57:24there are 1300
00:57:25critical access hospital
00:57:27and by critical access hospital
00:57:29by definition
00:57:31there are less than 25 beds
00:57:33so given that
00:57:34if you're training
00:57:35a physician
00:57:36obviously scope
00:57:37and volume
00:57:37becomes a problem
00:57:38so when you're trying
00:57:40to train a rural program
00:57:41for residents
00:57:42you have to send them
00:57:43to distance away
00:57:45for training
00:57:46and one of the barriers
00:57:47to that is that
00:57:49for example
00:57:49our orthopedic program
00:57:51got shut down
00:57:51because we have to send
00:57:53our residents
00:57:53to Cincinnati Children's Hospital
00:57:55and we have a consortium model
00:57:57that we have partnership
00:57:58with them
00:57:59and that was not
00:58:00acceptable to them
00:58:01so that creates
00:58:02a barrier
00:58:02where we're trying
00:58:03to increase quality
00:58:04and scope and volume
00:58:06for our residents
00:58:06and they thought
00:58:08that was a negative
00:58:10we got cited
00:58:11and that was one
00:58:12of the reasons
00:58:12why they closed
00:58:13down our program
00:58:14so do you have
00:58:15some ideas
00:58:16of how to fix
00:58:16those kind of
00:58:17accreditation problems
00:58:18yeah absolutely
00:58:19if you look at
00:58:21prior to 2015
00:58:23the merger
00:58:24of the ACGME
00:58:25and the AOA
00:58:26there was an alternative
00:58:28accreditation body
00:58:29which is from the AOA
00:58:30and if you look at
00:58:31prior to the merger
00:58:33we have
00:58:35most of
00:58:36osteopathic institutions
00:58:38have a consortium model
00:58:39where we
00:58:40have a network
00:58:42of small community hospitals
00:58:44and or community hospitals
00:58:46and we sort of
00:58:47leverage each other's strength
00:58:49and we put in
00:58:49the consortium model
00:58:50that we
00:58:51have a network
00:58:53of training sites
00:58:54that we can send
00:58:55our residents
00:58:55and collaborate
00:58:56and that
00:58:57model has worked out
00:58:59for many many years
00:59:00Mill Creek Community Hospital
00:59:02which now is called
00:59:03why was it changed
00:59:04it changed because
00:59:06of the merger
00:59:08of the merger
00:59:09that's correct
00:59:10specifically the issue
00:59:11that this committee
00:59:12addressed antitrust
00:59:13is focusing on
00:59:15correct
00:59:15in my opinion
00:59:17yes
00:59:17okay
00:59:18Mr. Miller
00:59:19there is persistent
00:59:21and growing shortage
00:59:22of medical professionals
00:59:23in this country
00:59:24and again
00:59:25representing a state
00:59:26like Wyoming
00:59:27we seem to be
00:59:28hit harder
00:59:28than many others
00:59:29do you think
00:59:30placing qualifications
00:59:31on job positions
00:59:32that are not based
00:59:33on merits
00:59:34such as the DEI
00:59:36requirements
00:59:37exacerbates the challenges
00:59:38our nation is facing
00:59:40in terms of providing
00:59:41care for our citizens
00:59:42well the
00:59:44it sounds like
00:59:46a euphemism
00:59:47you know
00:59:47the goal is
00:59:49to have everything
00:59:49based upon
00:59:50competition
00:59:50quality and merit
00:59:51the rest of the
00:59:53distinctions are
00:59:54ancillary
00:59:55and can be
00:59:55distracting from that
00:59:56I don't want to
00:59:57overstate
00:59:58the magnitude
00:59:59of DEI
00:59:59and this is going
01:00:00to fight its way
01:00:00out through the courts
01:00:01we've got rulings
01:00:02they're going to be
01:00:03interpreted
01:00:04and some games
01:00:05are going to be played
01:00:06in the educational
01:00:06system in general
01:00:07not just for physicians
01:00:08but the more we can
01:00:10focus on
01:00:11what physicians
01:00:12are doing
01:00:13at the point of care
01:00:15and what they're
01:00:15producing
01:00:15that's what we want
01:00:17to measure
01:00:17as opposed to
01:00:18any other
01:00:19ancillary considerations
01:00:20but I think
01:00:21that's going to
01:00:22work itself out
01:00:22through further litigation
01:00:23probably more so
01:00:24than
01:00:25random interventions
01:00:27changes
01:00:27okay
01:00:27Mr. Mary
01:00:29very quickly
01:00:29this hearing
01:00:30focuses on the
01:00:31antitrust exemption
01:00:32granted by Congress
01:00:34but you were hired
01:00:35in the 1990s
01:00:36as part of a lawsuit
01:00:37against the match
01:00:38system
01:00:38the National Resident
01:00:40Matching Program
01:00:41also known as
01:00:42MATCH
01:00:42was founded in 1952
01:00:44the ACGME
01:00:46was established
01:00:47in 1981
01:00:48how far back
01:00:49does the harm
01:00:50for your clients
01:00:50and other medical
01:00:51students go
01:00:52I think the harm
01:00:54goes all the way
01:00:54back to 1952
01:00:56frankly
01:00:56from the beginning
01:00:58just created
01:00:59the program itself
01:01:00people got their
01:01:01positions by
01:01:02telegrams
01:01:03back in 1952
01:01:04the problems
01:01:05then have no
01:01:06relevance to today
01:01:07in my view
01:01:08okay
01:01:08thank you
01:01:09I yield back
01:01:10gentlewoman yields
01:01:11back
01:01:11gentleman from
01:01:12Illinois is now
01:01:13recognized for five
01:01:14minutes
01:01:14thank you
01:01:15Chairman Fitzgerald
01:01:16and members
01:01:18the witnesses
01:01:19that are here today
01:01:20we're here today
01:01:22because we're
01:01:23talking about
01:01:24the possibility
01:01:25of an antitrust
01:01:27exemption
01:01:27for the medical
01:01:28residency
01:01:30match program
01:01:30as a strong
01:01:31proponent of
01:01:32enforcing
01:01:33antitrust laws
01:01:34I approach
01:01:35any exemption
01:01:36with skepticism
01:01:37it seems to me
01:01:38that the exemption
01:01:39for the match
01:01:40has pros
01:01:42and cons
01:01:43in some ways
01:01:43it does limit
01:01:45choice for candidates
01:01:45who are bound
01:01:46to the program
01:01:47they match with
01:01:48and cannot negotiate
01:01:49employment terms
01:01:50or benefits
01:01:51since they are
01:01:52matched
01:01:52so there are
01:01:54legitimate questions
01:01:55about how the system
01:01:56works and how
01:01:57it can be improved
01:01:59but it's also true
01:02:00that repealing
01:02:01the antitrust
01:02:03exemption
01:02:04outright
01:02:04may have
01:02:06unintended
01:02:07consequences
01:02:07that worsen
01:02:08outcomes for
01:02:10medical residents
01:02:11Dr. Feldman
01:02:12in your opinion
01:02:13could repealing
01:02:15the exemption
01:02:17actually end up
01:02:19benefiting the most
01:02:20well-resourced
01:02:21hospitals
01:02:22medical schools
01:02:24and residency
01:02:24programs
01:02:25I think it could
01:02:28because
01:02:28what
01:02:29what I think
01:02:31I would worry
01:02:32about
01:02:33is
01:02:33a sort of
01:02:34insiderism
01:02:35where
01:02:36outside of the match
01:02:37you would have
01:02:38well-resourced applicants
01:02:39with well-resourced
01:02:40mentors
01:02:41who are connecting
01:02:42with well-resourced
01:02:43institutions
01:02:44and some of the
01:02:45fairness that
01:02:46the match
01:02:46engenders
01:02:47would be lost
01:02:49I think
01:02:49thank you
01:02:50clearly this is
01:02:51a nuanced
01:02:53issue
01:02:53and congress
01:02:54should be taking
01:02:56a nuanced
01:02:57approach to it
01:02:58as well
01:02:58our
01:02:59one relevant
01:03:00factor here
01:03:01is that
01:03:01most medical
01:03:02residencies
01:03:03are at least
01:03:04partially funded
01:03:05by federal dollars
01:03:07so
01:03:07if we want to fix
01:03:08some of the issues
01:03:09created by the match
01:03:11like compensation
01:03:12and shortages
01:03:13of internal
01:03:15medicine residents
01:03:16congress
01:03:16can act
01:03:17to solve them
01:03:18Dr. Feldman
01:03:19would you agree
01:03:20that federal
01:03:21funding
01:03:21can be used
01:03:22to address
01:03:23these issues
01:03:24I would agree
01:03:25thank you
01:03:26I also want
01:03:28to join
01:03:28my colleagues
01:03:29here
01:03:30in pointing out
01:03:31how absurd
01:03:32it is
01:03:32that Republicans
01:03:33are portraying
01:03:33themselves
01:03:34as champions
01:03:35of physicians
01:03:37patients
01:03:37and health care
01:03:39more broadly
01:03:40when their policies
01:03:41are actively
01:03:42destroying access
01:03:43to affordable
01:03:44health care
01:03:44my colleagues
01:03:45have addressed
01:03:46that
01:03:46and they've
01:03:47also brought
01:03:47up
01:03:48the devastating
01:03:49cuts
01:03:50to the NIH
01:03:51and the FDA
01:03:52which will
01:03:54jeopardize
01:03:55the research
01:03:56that residents
01:03:56and physicians
01:03:58rely on
01:03:59to treat
01:03:59their patients
01:04:00but there are
01:04:00also significant
01:04:02anti-trust issues
01:04:03in health care
01:04:04that are driving
01:04:05up costs
01:04:06for patients
01:04:07if Republicans
01:04:08cared about
01:04:09solving the root
01:04:10causes
01:04:10of those problems
01:04:12we would be
01:04:13talking about
01:04:14hospital mergers
01:04:15price gouging
01:04:16or consolidation
01:04:17in the
01:04:18pharmaceutical
01:04:19industry
01:04:20Dr. Feldman
01:04:21let me ask you
01:04:22about the last
01:04:23issue
01:04:24since your
01:04:26research has
01:04:27focused on it
01:04:28how is
01:04:29how is
01:04:30vertical integration
01:04:31in the
01:04:32pharmaceutical
01:04:33industry
01:04:34driving up
01:04:35the cost
01:04:35for consumers
01:04:36at the center
01:04:38of the
01:04:39of vertical
01:04:40integration
01:04:40in the
01:04:41pharmaceutical
01:04:41industry
01:04:42are PBMs
01:04:43pharmacy benefit
01:04:43managers
01:04:44and PBMs
01:04:46distort the
01:04:47incentives
01:04:48for lower
01:04:49cost drugs
01:04:50PBMs
01:04:52are after
01:04:53large
01:04:55confidential
01:04:55discounts
01:04:56which
01:04:56can keep
01:04:58list prices
01:04:58high
01:04:59and patients
01:05:00don't see
01:05:00the benefits
01:05:01of those
01:05:01discounts
01:05:02in fact
01:05:03their out-of-pocket
01:05:03costs are tied
01:05:04more to
01:05:05list prices
01:05:06and so
01:05:06PBMs
01:05:07have been
01:05:08in part
01:05:09responsible
01:05:09for driving
01:05:10some of the
01:05:11high out-of-pocket
01:05:12costs
01:05:12that we see
01:05:13in vertical
01:05:14integration
01:05:15when PBMs
01:05:16and pharmacies
01:05:17and payers
01:05:18are all
01:05:18owned by
01:05:19the same
01:05:19company
01:05:20can lead
01:05:22to reduced
01:05:22choices
01:05:23at the
01:05:23pharmacy
01:05:24and bad
01:05:25outcomes
01:05:25for patients
01:05:26thank you
01:05:27this
01:05:28exchange
01:05:29illustrates
01:05:30why we
01:05:31need a
01:05:31serious
01:05:32principled
01:05:33approach
01:05:33to antitrust
01:05:34enforcement
01:05:35and why
01:05:36we need
01:05:37antitrust
01:05:38enforcers
01:05:38at the
01:05:39FTC
01:05:40and the
01:05:41DOJ
01:05:41who are
01:05:42willing
01:05:43to fight
01:05:43for workers
01:05:44for consumers
01:05:45and patients
01:05:46instead of
01:05:47bending the
01:05:47knee
01:05:48to billionaires
01:05:49and corporate
01:05:50interests
01:05:51thank you
01:05:52and I yield
01:05:53back
01:05:53the gentleman
01:05:54yields back
01:05:55I'm not going
01:05:55to recognize
01:05:56myself for
01:05:56five minutes
01:05:57and yield
01:05:57my time
01:05:58to the
01:05:59gentleman
01:05:59from Missouri
01:06:00for five minutes
01:06:02who waved
01:06:03onto the
01:06:03committee
01:06:03thank you
01:06:05Mr.
01:06:05Chairman
01:06:06and thanks
01:06:06for all
01:06:06the witnesses
01:06:07here today
01:06:08Dr.
01:06:10Lin
01:06:10in your
01:06:10testimony
01:06:11you
01:06:11you
01:06:11touched
01:06:12a little
01:06:12bit
01:06:13on some
01:06:13of the
01:06:14residency
01:06:15closures
01:06:16that
01:06:16were those
01:06:18ones
01:06:18at your
01:06:19institution
01:06:19specifically
01:06:20or around
01:06:21the country
01:06:22or
01:06:22so in
01:06:23my written
01:06:23testimony
01:06:24my oral
01:06:24testimony
01:06:25it's a
01:06:25combination
01:06:25of
01:06:26our
01:06:27LECOM
01:06:28system
01:06:30hospitals
01:06:31okay
01:06:32and
01:06:33you know
01:06:34I was
01:06:34reading
01:06:35in your
01:06:35early
01:06:36in your
01:06:36written
01:06:36testimony
01:06:37that there
01:06:38was a
01:06:38general
01:06:39surgery
01:06:40program
01:06:40let's see
01:06:41the termination
01:06:42oh is of
01:06:42the director
01:06:43due to
01:06:44non-compliance
01:06:45with COVID-19
01:06:46vaccination
01:06:47yeah so
01:06:48that was
01:06:48in our
01:06:49Almira
01:06:50campus
01:06:50in our
01:06:51regional
01:06:51campus
01:06:52my
01:06:53understanding
01:06:54of that
01:06:54case
01:06:55is that
01:06:55it was
01:06:56the height
01:06:56of COVID
01:06:56and the
01:06:58program
01:06:58director
01:06:59didn't want
01:07:00to get
01:07:01a vaccination
01:07:01and because
01:07:02of that
01:07:03there was a
01:07:03mandate
01:07:03from ACGME
01:07:04that required
01:07:06the program
01:07:06directors
01:07:06to have
01:07:07vaccinations
01:07:08so the
01:07:09program
01:07:10director
01:07:10resigned
01:07:11from the
01:07:12position
01:07:12and because
01:07:13of that
01:07:13there was
01:07:14no program
01:07:14director
01:07:15and they
01:07:15shut down
01:07:15the program
01:07:16oh and
01:07:16that was
01:07:17my question
01:07:17the program
01:07:18did end up
01:07:19getting shut
01:07:19down
01:07:19yes
01:07:20okay
01:07:20and how
01:07:22many do
01:07:22you have an
01:07:23estimate
01:07:23of about
01:07:23how many
01:07:24residency
01:07:25programs
01:07:25have been
01:07:26shut down
01:07:27over the
01:07:27years
01:07:27because
01:07:28of ACGME
01:07:29so I
01:07:30just have
01:07:31general
01:07:31statistics
01:07:32where
01:07:33after the
01:07:34merger
01:07:35of the
01:07:35ACGME
01:07:36and AOA
01:07:36there is
01:07:37approximately
01:07:38670 some
01:07:39programs
01:07:40that have
01:07:40closed
01:07:41and more
01:07:42recently
01:07:43it's an
01:07:44ongoing
01:07:44process
01:07:45where
01:07:46you know
01:07:46there are
01:07:46new programs
01:07:47they're trying
01:07:47to get
01:07:48started
01:07:48and then
01:07:49there are
01:07:49programs
01:07:50getting shut
01:07:51down
01:07:51but if
01:07:51you look
01:07:51at it
01:07:52disproportionately
01:07:53it's always
01:07:54the smaller
01:07:54community
01:07:55program
01:07:56that is
01:07:56not as
01:07:57resourced
01:07:57as a
01:07:58tertiary care
01:07:58center
01:07:59or a
01:08:00university
01:08:00based
01:08:01center
01:08:01that
01:08:02can't
01:08:02meet
01:08:02the
01:08:02standards
01:08:03that are
01:08:03getting
01:08:03shut
01:08:04down
01:08:04right
01:08:05yeah
01:08:05that's
01:08:05what it
01:08:05seems
01:08:06to me
01:08:06that it's
01:08:07a matter
01:08:07of
01:08:07resources
01:08:09you're
01:08:09you're
01:08:09not
01:08:09going
01:08:10to see
01:08:10a
01:08:10program
01:08:10at
01:08:11Harvard
01:08:11Medical
01:08:12School
01:08:12getting
01:08:12shut
01:08:13down
01:08:13but
01:08:13in
01:08:14rural
01:08:15America
01:08:16where we
01:08:16have
01:08:17the
01:08:17most
01:08:17acute
01:08:18shortage
01:08:18of
01:08:19primary
01:08:19care
01:08:19doctors
01:08:20and
01:08:20of
01:08:20specialists
01:08:21you know
01:08:22with fewer
01:08:23resources
01:08:24that's where
01:08:24they get
01:08:24shut
01:08:25down
01:08:25correct
01:08:25and
01:08:26I
01:08:26would
01:08:27say
01:08:27that
01:08:28you know
01:08:28Dr.
01:08:29Philman
01:08:29and my
01:08:30job
01:08:30are probably
01:08:31very
01:08:32different
01:08:32his
01:08:33environment
01:08:33my
01:08:33environment
01:08:34is
01:08:34very
01:08:34different
01:08:35I
01:08:35work
01:08:35in a
01:08:36critical
01:08:36access
01:08:36hospital
01:08:37with 25
01:08:38beds
01:08:39in
01:08:39Corrie
01:08:39Pennsylvania
01:08:40where the
01:08:41population
01:08:41is probably
01:08:42less than
01:08:436,000
01:08:43in that
01:08:44town
01:08:44but there's
01:08:45absolutely
01:08:45no
01:08:45resources
01:08:46so from
01:08:47that
01:08:47perspective
01:08:47you know
01:08:48I'm not
01:08:51saying
01:08:51ACGME
01:08:52is bad
01:08:52I'm saying
01:08:53that there
01:08:54needs to be
01:08:54an alternative
01:08:55way to
01:08:55focus on
01:08:56a different
01:08:57venue
01:08:57so we can
01:08:58create
01:08:58different types
01:09:00of physicians
01:09:00nor I'm
01:09:01sure are you
01:09:02saying that
01:09:02every
01:09:03residency
01:09:04program in
01:09:05the country
01:09:05is good
01:09:06that there
01:09:07isn't
01:09:08there has
01:09:08to be
01:09:09a standard
01:09:09but it
01:09:11seems to
01:09:11me
01:09:11that at
01:09:12a time
01:09:12when
01:09:13over
01:09:148,800
01:09:15medical school
01:09:16graduates
01:09:16per year
01:09:17go unmatched
01:09:18that it's
01:09:19a tragedy
01:09:20that a
01:09:21bureaucratic
01:09:21organization
01:09:22with a
01:09:22monopoly
01:09:23is shutting
01:09:23down
01:09:23programs
01:09:25correct
01:09:26and I
01:09:29believe
01:09:29there was
01:09:31a question
01:09:32earlier
01:09:32in this
01:09:33about
01:09:33DEI
01:09:35and
01:09:35maybe
01:09:36ACGME
01:09:37backing
01:09:38away
01:09:39from
01:09:39DEI
01:09:40requirements
01:09:41did
01:09:42one of
01:09:43the witnesses
01:09:43address
01:09:44that
01:09:44yes
01:09:45that was
01:09:46me
01:09:46we did
01:09:47receive
01:09:47an email
01:09:48notifying
01:09:49all the
01:09:50programs
01:09:50that
01:09:51as of
01:09:51May 9th
01:09:52they were
01:09:52suspending
01:09:53the DEI
01:09:53requirements
01:09:54that used
01:09:55to be
01:09:55an
01:09:55institutional
01:09:56and
01:09:56common
01:09:57program
01:09:58requirement
01:09:59for
01:09:59every
01:10:00sponsored
01:10:01institution
01:10:01as well
01:10:02as programs
01:10:03did many
01:10:04of those
01:10:04programs
01:10:04have
01:10:05DEI
01:10:05officers
01:10:06or someone
01:10:07employed
01:10:08to monitor
01:10:09these mandates
01:10:10well yes
01:10:11because using
01:10:12the standards
01:10:13if you want
01:10:14to maintain
01:10:14the program
01:10:16the individual
01:10:17program
01:10:18institution
01:10:18would have
01:10:19to expand
01:10:19resources
01:10:20to meet
01:10:21that requirement
01:10:21my concern
01:10:23there of course
01:10:24is that
01:10:24even if the
01:10:25requirement
01:10:26goes away
01:10:27all of these
01:10:27institutions
01:10:28have hired
01:10:28people
01:10:29to do
01:10:29something
01:10:30those people
01:10:31are going
01:10:31to
01:10:31unless they
01:10:32relieve them
01:10:33of their
01:10:33jobs
01:10:34these
01:10:36same
01:10:37people
01:10:37embedded
01:10:38in the
01:10:38system
01:10:39driven by
01:10:40ACGME
01:10:40requirements
01:10:41over the
01:10:41years
01:10:41will continue
01:10:42to engage
01:10:44in pernicious
01:10:44discrimination
01:10:45based on race
01:10:47in violation
01:10:48of I think
01:10:48both moral
01:10:49principle
01:10:49and federal
01:10:50law
01:10:50but that's
01:10:51something I
01:10:52think ACGME
01:10:53has given
01:10:53us over the
01:10:54years
01:10:54well thank you
01:10:56for your
01:10:56testimony
01:10:56I yield
01:10:57back
01:10:57gentleman
01:10:58yields back
01:10:59who now
01:10:59recognize
01:11:00the ranking
01:11:00member of
01:11:01the full
01:11:01committee
01:11:01for five
01:11:03minutes
01:11:03thank you
01:11:04very much
01:11:04Mr. Chairman
01:11:05Dr. Feldman
01:11:06President Trump
01:11:09and Secretary
01:11:11Kennedy want
01:11:12to cut
01:11:1318 billion
01:11:14dollars
01:11:14from NIH
01:11:15they want
01:11:16to cut
01:11:17three and a
01:11:17half billion
01:11:18dollars
01:11:18from CDC
01:11:19the Centers
01:11:21for Disease
01:11:21Control
01:11:21and they want
01:11:22to cut
01:11:224.7
01:11:23billion dollars
01:11:24from the
01:11:24National Science
01:11:25Foundation
01:11:26these
01:11:27unprecedented
01:11:28proposed
01:11:30reductions
01:11:30in America's
01:11:32health care
01:11:34research
01:11:34spending
01:11:35would come
01:11:37at a time
01:11:37when we have
01:11:38overwhelming
01:11:38needs in
01:11:39the American
01:11:40public
01:11:41for medical
01:11:43and scientific
01:11:43breakthroughs
01:11:44and also
01:11:45they come
01:11:45at a time
01:11:46when we have
01:11:46the opportunity
01:11:47to make
01:11:47big breakthroughs
01:11:50in scientific
01:11:51research
01:11:52related to
01:11:54everything
01:11:54from
01:11:55multiple
01:11:57sclerosis
01:11:58to
01:11:59cystic
01:11:59fibrosis
01:12:00to
01:12:01breast
01:12:01cancer
01:12:02to
01:12:02malignant
01:12:03narcissistic
01:12:05personality
01:12:05disorder
01:12:06you name
01:12:06it
01:12:06what would
01:12:08be the
01:12:08direct
01:12:09effects
01:12:09of such
01:12:11drastic
01:12:12budget
01:12:12reductions
01:12:13on health
01:12:14care
01:12:14delivery
01:12:15and on
01:12:17the progress
01:12:18of
01:12:18health care
01:12:19research
01:12:20I think
01:12:22the effects
01:12:22would be
01:12:23dramatic
01:12:24when you
01:12:24look at
01:12:25FDA
01:12:26approved
01:12:26drugs
01:12:27nearly
01:12:27every
01:12:28single
01:12:28drug
01:12:29that gets
01:12:29approved
01:12:29by the
01:12:29FDA
01:12:30is traced
01:12:31back
01:12:31to some
01:12:32funding
01:12:32through
01:12:33the
01:12:33NIH
01:12:34NIH
01:12:35funding
01:12:35has
01:12:36contributed
01:12:37to
01:12:37cures
01:12:38for
01:12:38hepatitis
01:12:38C
01:12:39to
01:12:39treatments
01:12:40for
01:12:40HIV
01:12:40to
01:12:41COVID-19
01:12:41vaccines
01:12:42cutting
01:12:45NIH
01:12:46funding
01:12:46will
01:12:47absolutely
01:12:48reduce
01:12:50the number
01:12:50of
01:12:51breakthrough
01:12:51therapies
01:12:52of
01:12:53game
01:12:54changing
01:12:54therapies
01:12:55that
01:12:55patients
01:12:55would
01:12:55see
01:12:56in the
01:12:56future
01:12:56I think
01:12:57it's
01:12:57a bad
01:12:57idea
01:12:57so it
01:12:59sounds
01:12:59like
01:13:00we
01:13:00would
01:13:00be
01:13:01essentially
01:13:01destroying
01:13:03the
01:13:05wellspring
01:13:06for
01:13:07research
01:13:08across
01:13:09the board
01:13:09I think
01:13:11that's
01:13:11right
01:13:11and what
01:13:12you have
01:13:12to
01:13:12remember
01:13:13is that
01:13:14the NIH
01:13:14is funding
01:13:15the highest
01:13:17risk
01:13:18highest reward
01:13:18research
01:13:19that
01:13:19pharmaceutical
01:13:20companies
01:13:20then
01:13:21take
01:13:22to
01:13:23market
01:13:23so
01:13:24it's
01:13:24hard
01:13:24to
01:13:25know
01:13:25what's
01:13:25going
01:13:25to
01:13:25work
01:13:25and
01:13:25what
01:13:26doesn't
01:13:26and
01:13:26that's
01:13:27why
01:13:27you
01:13:27need
01:13:27broad
01:13:28funding
01:13:28and
01:13:29NIH
01:13:29has
01:13:29been
01:13:30incredibly
01:13:30successful
01:13:32in
01:13:33funding
01:13:34new
01:13:35cares
01:13:35so
01:13:36what
01:13:36are
01:13:36some
01:13:37of
01:13:37the
01:13:37next
01:13:38generation
01:13:38breakthroughs
01:13:39that
01:13:40might
01:13:40be
01:13:40lost
01:13:41if
01:13:41Robert F.
01:13:43Kennedy
01:13:43Jr.
01:13:44and Donald
01:13:44Trump
01:13:44have
01:13:44their
01:13:45way
01:13:45in
01:13:46dismantling
01:13:46so much
01:13:47scientific
01:13:48health
01:13:48research
01:13:49I think
01:13:49what's
01:13:50hard
01:13:50about
01:13:50this
01:13:51is
01:13:51that
01:13:51we
01:13:51can't
01:13:52know
01:13:52until
01:13:52we
01:13:52actually
01:13:53do
01:13:53the
01:13:53research
01:13:53until
01:13:54the
01:13:55funding
01:13:55comes
01:13:56but
01:13:56you
01:13:57mentioned
01:13:57some
01:13:58key
01:13:58disease
01:13:59areas
01:13:59that
01:14:00are
01:14:00vital
01:14:00for
01:14:01public
01:14:01health
01:14:01cancer
01:14:02we've
01:14:03had
01:14:03breakthroughs
01:14:04in
01:14:04cancer
01:14:04therapy
01:14:05over
01:14:05the
01:14:05last
01:14:0510
01:14:0620
01:14:0630
01:14:06years
01:14:07checkpoint
01:14:07inhibitors
01:14:08that
01:14:08treat
01:14:09a
01:14:09variety
01:14:09of
01:14:09different
01:14:10malignancies
01:14:10Alzheimer's
01:14:12dementia
01:14:12there
01:14:14are
01:14:14numerous
01:14:15untreated
01:14:16diseases
01:14:18in
01:14:18my area
01:14:19pulmonology
01:14:20COPD
01:14:22asthma
01:14:22these are
01:14:23diseases
01:14:23that
01:14:23have had
01:14:25some
01:14:25recent
01:14:26breakthroughs
01:14:26but I
01:14:27would love
01:14:27to see
01:14:27more
01:14:28therapies
01:14:28available
01:14:28for
01:14:29patients
01:14:30my
01:14:31guest
01:14:32to the
01:14:32joint
01:14:32session
01:14:33of
01:14:33congress
01:14:34Dr.
01:14:35Lauren
01:14:35McGee
01:14:36a
01:14:36constituent
01:14:36of mine
01:14:37was the
01:14:37chief
01:14:38biologist
01:14:38on a
01:14:39pediatric
01:14:39cancer
01:14:40unit
01:14:40at
01:14:41NIH
01:14:41and she
01:14:42got
01:14:42sacked
01:14:42on
01:14:43February
01:14:4314th
01:14:44because she
01:14:44made the
01:14:45mistake
01:14:45of being
01:14:45on
01:14:45probation
01:14:46not because
01:14:47she'd
01:14:47done
01:14:47anything
01:14:47wrong
01:14:48but because
01:14:48she'd
01:14:48been
01:14:48promoted
01:14:49after
01:14:50serial
01:14:51superior
01:14:52evaluations
01:14:53by the
01:14:54people
01:14:54reviewing
01:14:54her
01:14:55then we
01:14:55heard
01:14:56President
01:14:58Trump
01:14:58at the
01:14:59State
01:14:59Union
01:14:59saying
01:15:00that
01:15:00attacking
01:15:01childhood
01:15:02cancer
01:15:02was one
01:15:03of his
01:15:03key
01:15:03priorities
01:15:03do we
01:15:04have
01:15:04any
01:15:04chance
01:15:05of
01:15:05making
01:15:05progress
01:15:06on
01:15:07childhood
01:15:07cancer
01:15:07if we're
01:15:08dismantling
01:15:08the
01:15:09basic
01:15:09research
01:15:10that's
01:15:10going
01:15:10on at
01:15:11NIH
01:15:11about
01:15:12it
01:15:12the
01:15:13way
01:15:13to
01:15:14make
01:15:14progress
01:15:14on
01:15:15childhood
01:15:15cancer
01:15:15other
01:15:16diseases
01:15:16of
01:15:17childhood
01:15:17is
01:15:18through
01:15:18funding
01:15:19the
01:15:19research
01:15:20enterprise
01:15:20that
01:15:20finds
01:15:21new
01:15:23cures
01:15:24the
01:15:27administration
01:15:27is also
01:15:28proposing
01:15:28a massive
01:15:29cut to
01:15:29Medicaid
01:15:29which
01:15:31the
01:15:31CBO
01:15:31estimates
01:15:32would result
01:15:32in 8.5
01:15:33million
01:15:33people
01:15:34losing
01:15:34health
01:15:34care
01:15:35access
01:15:35over the
01:15:35next
01:15:35decade
01:15:36what
01:15:37population
01:15:38groups
01:15:38in what
01:15:39parts of
01:15:39the
01:15:39country
01:15:40are
01:15:40most
01:15:40affected
01:15:41by
01:15:41these
01:15:42Medicaid
01:15:42cuts
01:15:42these
01:15:43cuts
01:15:44will
01:15:44affect
01:15:44the
01:15:44most
01:15:45disadvantaged
01:15:45members
01:15:46of
01:15:46society
01:15:47in
01:15:48rural
01:15:50communities
01:15:50urban
01:15:51communities
01:15:51and cities
01:15:52I think
01:15:53it will
01:15:54be
01:15:54lead to
01:15:56very bad
01:15:56health
01:15:57outcomes
01:15:57my time
01:15:58is up
01:15:59but thank
01:15:59you Mr.
01:15:59Chairman
01:15:59we're now
01:16:01going to
01:16:02recognize
01:16:02the
01:16:02gentleman
01:16:03from
01:16:03California
01:16:04for five
01:16:04minutes
01:16:05thank you
01:16:06Mr.
01:16:07Chairman
01:16:07first of
01:16:07all I
01:16:07want to
01:16:08welcome
01:16:08the
01:16:08witnesses
01:16:09here
01:16:09today
01:16:09my wife
01:16:11is a
01:16:11medical
01:16:11doc
01:16:12and
01:16:12this
01:16:14subject
01:16:14brings
01:16:14back
01:16:15a lot
01:16:15of
01:16:15memories
01:16:16some
01:16:17kind
01:16:17of
01:16:17nightmarish
01:16:18residents
01:16:19as an
01:16:19OB
01:16:20resident
01:16:21putting in
01:16:21all those
01:16:22hours
01:16:2290 hours
01:16:24a week
01:16:24pay was
01:16:26challenging
01:16:26but we
01:16:27all knew
01:16:27it was
01:16:27part of
01:16:29the education
01:16:29process
01:16:30to become
01:16:31a good
01:16:31medical
01:16:32doctor
01:16:32a good
01:16:33specialist
01:16:34in the
01:16:34area
01:16:35of
01:16:35practice
01:16:35I've
01:16:40spoken to
01:16:40her
01:16:41about
01:16:41this
01:16:41issue
01:16:41and
01:16:42she
01:16:42concurs
01:16:43with me
01:16:43a lot
01:16:44of
01:16:44nightmares
01:16:44a lot
01:16:45of
01:16:45challenges
01:16:45and a
01:16:46tight
01:16:46budget
01:16:46it worked
01:16:48out
01:16:49so my
01:16:49question
01:16:50would be
01:16:50Dr.
01:16:51Feldman
01:16:52I'm going
01:16:52to ask
01:16:52you
01:16:52if it
01:16:53ain't
01:16:53broke
01:16:53why
01:16:54fix it
01:16:54what
01:16:54is wrong
01:16:55right now
01:16:56with the
01:16:56match
01:16:56system
01:16:58or the
01:16:58program
01:16:59I think
01:17:01the
01:17:01downsides
01:17:02have been
01:17:03spelled
01:17:04out
01:17:04by
01:17:04other
01:17:05witnesses
01:17:05and
01:17:06to an
01:17:07extent
01:17:07in my
01:17:08testimony
01:17:08I mean
01:17:10the current
01:17:11system
01:17:12does not
01:17:12allow
01:17:13individuals
01:17:13to
01:17:14negotiate
01:17:15salaries
01:17:16or benefits
01:17:16directly
01:17:17with
01:17:17institutions
01:17:18so let
01:17:18me ask
01:17:19you
01:17:19so it's
01:17:19an issue
01:17:20of money
01:17:21so to
01:17:21speak
01:17:22like
01:17:22everything
01:17:22else
01:17:23how much
01:17:23can you
01:17:24pay
01:17:24and
01:17:25we're
01:17:26looking at
01:17:27possible
01:17:27Medicaid
01:17:27cuts
01:17:28where
01:17:28do
01:17:28most
01:17:29of
01:17:29the
01:17:29match
01:17:30where
01:17:30is
01:17:30that
01:17:31funded
01:17:31you
01:17:32got
01:17:32medical
01:17:32schools
01:17:33that
01:17:33are
01:17:33growing
01:17:33you
01:17:33got
01:17:33you
01:17:34know
01:17:34we
01:17:35have
01:17:35a
01:17:35doctor
01:17:35shortage
01:17:36and
01:17:36you
01:17:36have
01:17:36people
01:17:37like
01:17:37Kaiser
01:17:38permanent
01:17:38back home
01:17:39in
01:17:40California
01:17:40they have
01:17:41a doctor
01:17:41shortage
01:17:42they started
01:17:43their own
01:17:43medical
01:17:44school
01:17:44they're
01:17:44moving
01:17:45on their
01:17:45own
01:17:45to try
01:17:46to
01:17:46alleviate
01:17:46the
01:17:46challenges
01:17:47they
01:17:47have
01:17:47so
01:17:47we
01:17:48want
01:17:48to
01:17:48have
01:17:48more
01:17:49docs
01:17:49expand
01:17:51the
01:17:51match
01:17:51what
01:17:51does
01:17:51it
01:17:52take
01:17:52more
01:17:52money
01:17:52I
01:17:54think
01:17:54we
01:17:54need
01:17:55more
01:17:55residency
01:17:56positions
01:17:56and
01:17:57as
01:17:57you
01:17:57said
01:17:57the
01:17:57funding
01:17:58for
01:17:58residency
01:17:58positions
01:17:59comes
01:17:59largely
01:17:59from
01:18:00Medicare
01:18:00and
01:18:00Medicaid
01:18:01so
01:18:01I
01:18:02think
01:18:02cuts
01:18:02to
01:18:03Medicaid
01:18:03are
01:18:04counterproductive
01:18:05it's
01:18:05also
01:18:05worth
01:18:06noting
01:18:06that
01:18:07hospitals
01:18:08that
01:18:08serve
01:18:09disadvantaged
01:18:09patient
01:18:10populations
01:18:10including
01:18:11patients
01:18:11with
01:18:11Medicaid
01:18:12will
01:18:12be
01:18:12hurt
01:18:13by
01:18:13these
01:18:14cuts
01:18:14to
01:18:14Medicaid
01:18:15inner
01:18:15city
01:18:15rural
01:18:16areas
01:18:16farms
01:18:17Midwest
01:18:19is that
01:18:20what you're
01:18:20talking
01:18:21about
01:18:21all
01:18:21of
01:18:22what
01:18:22you just
01:18:22mentioned
01:18:23because I
01:18:24know
01:18:24that
01:18:24my
01:18:25my
01:18:25spouse
01:18:26usually
01:18:26gets
01:18:27very
01:18:28interesting
01:18:28offers
01:18:29to go
01:18:29work
01:18:30as an
01:18:30OB
01:18:30in
01:18:31the
01:18:31middle
01:18:31of
01:18:32somewhere
01:18:33in this
01:18:34country
01:18:34and
01:18:35they're
01:18:37not
01:18:37very
01:18:37lucrative
01:18:38if it
01:18:39wasn't
01:18:39for the
01:18:40fact
01:18:40that we
01:18:40had
01:18:40you know
01:18:41family
01:18:42established
01:18:43in
01:18:43Southern
01:18:43California
01:18:43we may
01:18:44have
01:18:44taken
01:18:44some
01:18:44of
01:18:45them
01:18:45but
01:18:45yeah
01:18:46there's
01:18:46not
01:18:46much
01:18:47money
01:18:47to be
01:18:48made
01:18:48as a
01:18:48doc
01:18:48in
01:18:48the
01:18:49middle
01:18:49of
01:18:49nowhere
01:18:49I
01:18:51would
01:18:51love
01:18:52to see
01:18:52more
01:18:53incentives
01:18:53for
01:18:53primary
01:18:54care
01:18:54doctors
01:18:55in
01:18:55these
01:18:56underserved
01:18:57communities
01:18:57including
01:18:58rural
01:18:58communities
01:18:58give me
01:18:59an example
01:18:59of
01:18:59incentive
01:19:02higher
01:19:03pay
01:19:03loan
01:19:03forgiveness
01:19:04what are we
01:19:04talking about
01:19:05I think
01:19:06you know
01:19:06we could
01:19:06debate
01:19:07what incentives
01:19:07would work
01:19:08best
01:19:08loan forgiveness
01:19:09I think
01:19:09is a good
01:19:10example
01:19:10of a way
01:19:11in which
01:19:11the system
01:19:13might be able
01:19:13to entice
01:19:14physicians
01:19:14into areas
01:19:15that they
01:19:16might otherwise
01:19:16not be
01:19:17considering
01:19:17well you
01:19:18know
01:19:18I
01:19:18remember
01:19:19again
01:19:19speaking
01:19:20to my
01:19:20spouse
01:19:21and her
01:19:21colleagues
01:19:22the new
01:19:22brand
01:19:24spanking
01:19:24new
01:19:24docs
01:19:25that are
01:19:25hitting
01:19:25the market
01:19:26half a
01:19:27million dollars
01:19:28in debt
01:19:29something like
01:19:30that
01:19:31an unbelievable
01:19:32amount of
01:19:33money
01:19:33so how
01:19:35does a
01:19:36doc like
01:19:36that coming
01:19:37out of
01:19:37medical
01:19:38school
01:19:38residency
01:19:39balance
01:19:41their
01:19:41checkbook
01:19:42those numbers
01:19:45are right
01:19:45I can tell
01:19:46you coming
01:19:46out of
01:19:46residency
01:19:47I had
01:19:48over
01:19:48$300,000
01:19:49in medical
01:19:50school debt
01:19:51that's just
01:19:52the cost
01:19:52of going
01:19:52to medical
01:19:53school
01:19:53now
01:19:53there are
01:19:55programs
01:19:55in place
01:19:55we're looking
01:19:56at
01:19:56we need
01:19:58more money
01:19:58and I think
01:19:59the testimony
01:19:59that we need
01:20:01to pay
01:20:01residents
01:20:02a whole lot
01:20:03more
01:20:03is probably
01:20:04correct
01:20:04I wish
01:20:04it would
01:20:05have been
01:20:05there
01:20:0540 years
01:20:06ago
01:20:06when my
01:20:06wife
01:20:06was
01:20:07going
01:20:07to
01:20:07residency
01:20:07we
01:20:08appreciated
01:20:09your
01:20:09efforts
01:20:09but today
01:20:10here we
01:20:11are
01:20:11and you're
01:20:12looking at
01:20:13some public
01:20:13policies
01:20:14by the
01:20:14administration
01:20:15to cut
01:20:16Medicaid
01:20:17possibly
01:20:18Medicare
01:20:18when we're
01:20:20trying to
01:20:20expand
01:20:21the field
01:20:22of doctors
01:20:23available
01:20:24to take
01:20:25care of
01:20:25Americans
01:20:25it seems
01:20:26to me
01:20:26it's
01:20:26contradictory
01:20:27here
01:20:27what am
01:20:28I missing
01:20:28I don't
01:20:29think you're
01:20:30missing
01:20:30anything
01:20:30I agree
01:20:31so we
01:20:32all got
01:20:32to get
01:20:32on the
01:20:33same
01:20:33page
01:20:33need
01:20:34more
01:20:34docs
01:20:35need
01:20:35more
01:20:35residents
01:20:36need
01:20:36a better
01:20:36matching
01:20:37program
01:20:37need
01:20:37more
01:20:38money
01:20:38but it
01:20:39seems like
01:20:39the public
01:20:40policy is
01:20:41going the
01:20:41other way
01:20:41I agree
01:20:45I think
01:20:45if the
01:20:46focus is
01:20:46on solving
01:20:47the goals
01:20:48set out
01:20:49by this
01:20:49subcommittee
01:20:50of addressing
01:20:51physician
01:20:51shortages
01:20:52and
01:20:52improving
01:20:54resident
01:20:55salaries
01:20:55there are
01:20:56numerous
01:20:57countless
01:20:58ways
01:20:58to do
01:20:59that
01:20:59that I
01:21:00think
01:21:00are worth
01:21:01discussing
01:21:01thank you
01:21:02very much
01:21:03and I
01:21:03thank the
01:21:03witnesses
01:21:04all for
01:21:04their time
01:21:05and interest
01:21:06in this
01:21:06issue
01:21:06Mr. Chairman
01:21:07I yield
01:21:08gentlemen
01:21:08yields
01:21:09back
01:21:09recognize
01:21:10Mr. Nadler
01:21:11for some
01:21:11unanimous
01:21:12consent
01:21:12request
01:21:13thank you
01:21:13Mr. Chairman
01:21:14I ask
01:21:14unanimous
01:21:15consent
01:21:15to submit
01:21:15for the
01:21:16record
01:21:16this
01:21:17statement
01:21:18from the
01:21:19Association
01:21:20of American
01:21:21Colleges
01:21:21dated May
01:21:2214th
01:21:232024
01:21:24without
01:21:24objection
01:21:25and I
01:21:26ask
01:21:26unanimous
01:21:27consent
01:21:28to enter
01:21:28into the
01:21:29record
01:21:29an article
01:21:29titled
01:21:30more
01:21:30Medicare
01:21:30supported
01:21:31GME
01:21:31slots
01:21:32needed to
01:21:33curb
01:21:33doctor
01:21:33shortages
01:21:34from the
01:21:35AMA
01:21:35journal
01:21:36dated
01:21:36October
01:21:374th
01:21:382024
01:21:39without
01:21:40objection
01:21:40thank you
01:21:41Mr. Chairman
01:21:41I ask
01:21:42unanimous
01:21:42consent
01:21:43to enter
01:21:43the record
01:21:43the following
01:21:44statements
01:21:44a statement
01:21:45from Dr.
01:21:45John Ward
01:21:46a double
01:21:46board
01:21:46certified
01:21:47dermatologist
01:21:48practicing
01:21:48in Florida
01:21:49statement
01:21:50from Dr.
01:21:50Caleb
01:21:50Atkins
01:21:51current
01:21:51resident
01:21:52practicing
01:21:52family
01:21:53medicine
01:21:53in rural
01:21:54New York
01:21:54statement
01:21:55from National
01:21:55Board of
01:21:56Physicians
01:21:56and Surgeons
01:21:57calling for
01:21:58antitrust
01:21:58scrutiny
01:21:59of the
01:21:59medical
01:22:00residency
01:22:01market
01:22:01and a
01:22:02statement
01:22:02from Dr.
01:22:02Jeffrey
01:22:03Singer
01:22:03Senior Fellow
01:22:05at the
01:22:05Cato
01:22:05Institute
01:22:06no
01:22:08objection
01:22:08at this
01:22:10time
01:22:10that
01:22:11would
01:22:12conclude
01:22:13today's
01:22:14hearing
01:22:14we thank
01:22:15our
01:22:15witnesses
01:22:15for appearing
01:22:16before the
01:22:17committee
01:22:17today
01:22:18without
01:22:18objection
01:22:18all
01:22:19members
01:22:19will
01:22:19have
01:22:19five
01:22:20legislative
01:22:20days
01:22:21to
01:22:21submit
01:22:21additional
01:22:22written
01:22:22questions
01:22:22for the
01:22:23witnesses
01:22:23or additional
01:22:24materials
01:22:25for the
01:22:25record
01:22:25without
01:22:26objection
01:22:26the
01:22:27hearing
01:22:27is
01:22:27adjourned
01:22:28to