House Judiciary Committee Examines Antitrust Issues in Medical Residency Market

A U.S. congressional committee is launching an investigation into the placement of medical students into residency training programs, raising concerns about antitrust issues in the healthcare industry. The Republican leadership of the House Judiciary Committee’s antitrust panel has sent letters to several major university hospitals and medical organizations, demanding documents as part of the inquiry.

The committee is focused on whether restrictions in the medical residency market are restricting the mobility of medical students, suppressing their wages, and contributing to the growing shortage of doctors.

According to Reuters, the committee has specifically targeted groups such as the American Medical Association (AMA), the National Resident Matching Program (NRMP), and major institutions like Duke University Health System, MedStar Georgetown University Hospital, and Stanford University Medical Center for documents and records on residency practices.

The inquiry stems from concerns that Congress’ decision to shield medical residency practices from antitrust laws in 2004 may have led to unintended consequences. The House subcommittee, in letters sent to the organizations on Friday, stated that these protections might be harming medical applicants and patients alike.

“For years, resident wages have remained stagnant while doctor shortages have increased,” said U.S. Representative Scott Fitzgerald, R-Wisconsin, in a statement. “This harms medical students and hospital patients, and forces us to rely on foreign talent to fill the gap.”

The medical residency process involves post-graduate training for medical students. Under the current matching system, students submit their preferences for residency programs, and an algorithm assigns applicants to specific hospitals. The process is designed to match the skills and preferences of students with the needs of residency programs. According to Reuters, last year, more than 41,000 medical students participated in this matching process.

Read more: Healthcare Providers Sue BCBS Insurers Over Alleged Collusion

As part of its investigation, the House subcommittee is seeking records from organizations involved in the residency program, including the Association of American Medical Colleges and the Accreditation Council for Graduate Medical Education. The requested documents focus on complaints about the matching system, communication related to compensation limits, working conditions for residents, and the mobility of residents within different residency positions.

David Skorton, President and CEO of the Association of American Medical Colleges, confirmed that the organization is preparing a response to the House panel’s request. The documents sought by the subcommittee would cover communications and complaints from 2021 onward.

Representative Fitzgerald emphasized that the medical residency system’s antitrust exemption “has distorted the American medical residency market, undermining free market principles to the detriment of the nation’s doctors and the patients who rely on them.” According to Reuters, the investigation follows a class-action lawsuit filed in 2002 challenging the residency system, though the case was dismissed after the antitrust exemption was enacted in 2004.

The committee’s investigation highlights ongoing concerns about the dynamics of medical education and the impact of these practices on both future doctors and the healthcare system.

Source: Reuters