Arizona GME Funding At-risk of Being Swept Amid Dire Healthcare Workforce Shortage

May 29, 2026

Physicians Urge Legislators to Preserve GME Funding in Budget

Arizona and the broader U.S. are facing staggering healthcare workforce shortages. According to the Health Resources & Services Administration's National Center for Health Workforce Analysis, the nation will be short of more than 70,000 primary care clinicians — including physicians and physician assistants — by 2038.


The situation is especially dire in Arizona, where the gap between supply and demand is projected to be a 43% deficit — the highest in the country. Despite this highly concerning statistic, graduate medical education funding — which is a necessary investment in our state's workforce — is at risk of being swept in Arizona's fiscal year 2027 budget.


The Fiscal Reality in Arizona

Significant financial obligations, changes in federal funding, and sluggish revenue growth created the perfect storm for a dismal outlook on Arizona's FY2027 budget. Now, elected leaders are identifying efficiencies and pinpointing areas for savings. Unfortunately, spending reductions, budget adjustments, and cuts are unavoidable 

In this context, the Arizona Medical Association is urging the Arizona State Legislature to preserve GME funding — and to avoid sweeping these funds for other purposes.


Physicians Know: GME Funding is Vital

Arizona's physician community has long advocated for state-funded investments in GME, which plays a critical role in sustaining and strengthening Arizona's healthcare system. We've educated lawmakers on how funding for local residency programs enhances physician training, expands access to patient care, and helps ensure our healthcare system can meet the needs of our communities.

For these reasons, ArMA and our allied stakeholders successfully championed legislation that secured $4 million in federally-matched GME funding in 2025. While this and other funding have already been distributed among programs, any unspent allocation is still at risk of being swept in the FY2027 budget.


The Need for GME Funding Has Never Been Greater

With a nearly 50% projected shortfall in primary care clinicians, Arizona's healthcare is at-risk.


GME funding is one of the most effective and evidence-based tools the state has for addressing our serious healthcare workforce gaps. Evidence consistently shows that physicians are more likely to practice medicine in the state where they complete their residency training.


Maintaining robust GME support is essential not only for today's healthcare delivery but for building a stable and adequate physician workforce to address the future needs of our growing communities.

Abrazo Arizona Heart Hospital Launches Largest Expansion in Its History

By Admin User • August 7, 2026
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By Admin User • August 7, 2026
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