South Dakota Faces Physician Shortage as Proposed Funding Cuts Threaten Medical Residency Programs

The proposed funding cut to South Dakota’s medical residency program is stirring concern among health care organizations, who fear it could exacerbate the state’s existing physician shortage. South Dakota ranks poorly in terms of patient-to-physician ratio, with 51 of its 66 counties already classified as health professional shortage areas. The cuts would eliminate critical state funding for residency programs, which could hinder the ability to train and retain doctors in the state.

The residency programs are essential for providing on-the-job training for medical professionals after medical school, and the funding currently comes from a combination of state general funds and Medicaid.

If Noem’s proposal is approved, it would not only eliminate the state’s $1.7 million contribution, but also the associated $1.86 million federal Medicaid match.

Jacob Parsons, from the South Dakota Association of Healthcare Organizations, expressed concerns that potential residents might be more inclined to choose states like Iowa, which is expanding its residency slots.

This competition for medical talent is becoming a growing issue as the nation faces a physician shortage projected to worsen over the next decade. While South Dakota does have a rural residency program that the governor has proposed to increase funding for, the broader cuts to general residency funding could still result in fewer residency slots and, consequently, fewer doctors staying in the state.

Avera Health and other health systems in the state are already feeling the pressure. Avera’s Kim Malsam-Rysdon emphasized that without continued state support, residency slots may have to be reduced, ultimately affecting the state’s ability to train and retain doctors in the long term. Given that over 80% of residents who complete their training in South Dakota stay to practice in the state, losing residency spots could be a significant setback for South Dakota’s healthcare workforce.

Would you like to explore how similar challenges are being addressed in other states, or delve deeper into potential impacts on rural healthcare?

 

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