Nine Arizona Hospitals Receive Federal Funding for New Residency Positions

February 6, 2026

Nine Arizona hospitals and health systems — including several in rural areas of the state — will add approximately 30 new Medicare-funded residency positions across multiple specialties following recent federal funding awards announced by the Centers for Medicare & Medicaid Services.


National Program Overview


CMS distributed 400 new residency slots to more than 130 teaching hospitals nationwide through two federal programs designed to expand physician training capacity. The funding prioritizes hospitals in rural areas, health professional shortage areas, states with new medical schools, and institutions training residents beyond their current Medicare-supported caps. 


Arizona Residency Funding Awards


Institutions across Arizona, including several rural areas, received slots in primary care, surgical, behavioral health, and other specialties:

Hospital/Health System City Specialty Approximate Slots Added Section
Banner University Medical Center – South Tucson Emergency medicine ~2 126
Banner University Medical Center – Tucson Tucson Interventional radiology ~4 126
Banner University Medical Center Phoenix Family medicine ~3 126
Banner University Medical Center Phoenix Phoenix Psychiatry ~7 4122
HonorHealth John C. Lincoln Medical Center Phoenix Surgery ~3 126
HonorHealth Scottsdale Osborn Medical Center Scottsdale Rheumatology ~1 4122
Valleywise Health Phoenix Anesthesiology ~2 126
Yuma Regional Medical Center Yuma Psychiatry ~4 126
Yuma Regional Medical Center Yuma Psychiatry ~4 4122

Total Arizona Slots: Approximately 30 new residency positions

Note: Yuma Regional Medical Center received funding under both Section 126 and Section 4122 for psychiatry residency slots.


Two Funding Streams


The awards came through separate appropriations legislation:


  • Section 126 (Consolidated Appropriations Act of 2021): A five-year initiative distributing 1,000 new residency slots nationwide, with awards phased in over multiple years as programs expand.
  • Section 4122 (Consolidated Appropriations Act of 2023): Provides 200 additional slots beginning in fiscal year 2026, with at least half designated for psychiatry and psychiatry subspecialty training.


Both programs increase hospitals' Medicare-supported residency training caps, allowing institutions to receive federal graduate medical education funding for additional resident physicians.


National Workforce Concerns Drive Expansion


The federal expansion responds to projected physician workforce shortages. The Association of American Medical Colleges estimates a shortage of up to 86,000 physicians by 2036. Federal policymakers view residency pipeline expansion as a key strategy for addressing anticipated workforce gaps, particularly in underserved communities and shortage specialties.


Arizona's Rural Workforce Challenges


While all of Arizona faces a dire physician shortage, the state's rural communities face even greater challenges, which is reflected in national data. According to reports, approximately 92% of rural counties designated as Health Professional Shortage Areas. Primary care physician supply in rural areas is projected to meet only 68% of demand by 2037, below the national average of 73%. Research indicates that the loss of a single rural family physician can increase annual health spending by more than $1,300 per patient.


Recent GME Funding Wins in Arizona


The Arizona Medical Association continues to work alongside state leaders and healthcare organizations to secure additional graduate medical education funding to address physician workforce shortages.


In 2025, ArMA successfully passed state legislation that secured $4 million in federally matched GME funding for Arizona. The association also contributed to the state's Rural Health Transformation Fund application, which outlined workforce development as a strategic priority. The proposal called for increased residency slots, education subsidies for clinicians committing to underserved communities, and retention incentives for current healthcare professionals. Arizona will receive $167 million from the RHTP in FY2026.


ArMA Continues to Fight for Residency Slots


ArMA continues to advocate for increased GME funding and residency expansion as critical strategies to strengthen Arizona's physician workforce. The association remains committed to working with state and federal policymakers to secure resources that address rural health challenges and expand training opportunities for the next generation of physicians serving Arizona communities.

ADHS Issues Standing Orders for Flu, COVID-19 Vaccine Access

By Admin User • September 18, 2026
Statewide orders keep pharmacists and physicians authorized to vaccinate Arizonans amid uncertainty over the next ACIP meeting. Statewide Orders Cover the 2026-27 Flu & COVID Season The Arizona Department of Health Services has issued statewide standing orders supporting access to the 2026-27 influenza and COVID-19 vaccines approved by the U.S. Food and Drug Administration. Arizonans seeking a flu or COVID-19 vaccine should contact their physician or pharmacy to confirm availability. Why the Orders Were Issued Arizona pharmacists may administer vaccines recommended by the Advisory Committee on Immunization Practices, vaccines recommended by the Centers for Disease Control and Prevention for international travel, or vaccines authorized under a prescription, including a physician-issued public health standing order. With the timing of the next ACIP meeting uncertain, ADHS worked with the Arizona Board of Pharmacy to issue statewide standing orders for the flu and COVID-19 vaccines, which function as a prescription allowing pharmacists and physicians across Arizona to administer them to anyone who wants one. ADHS Medical Advisor Weighs In "Vaccines are one of the most important tools we have to protect our communities. The Influenza and COVID-19 vaccines have been proven safe and effective at preventing severe illness, hospitalization, and death. Vaccines help us limit the spread of disease, reduce pressure on our healthcare system and reduce costs," said Dr. Richard Carmona, ADHS public health medical advisor and the 17th U.S. Surgeon General. "We have issued these standing orders to ensure safe and timely access to the vaccines in alignment with scientific and evidence-based guidance." What Arizonans Should Know The standing orders do not require every pharmacy to offer vaccinations, and they do not guarantee insurance coverage for administration. Coverage and out-of-pocket costs vary by plan, so Arizonans should check with their insurance provider before scheduling an appointment. 

Arizona Asks Supreme Court to Halt Prison Health Care Takeover

By Admin User • September 18, 2026
State attorneys seek an emergency stay after lower courts reject bids to delay receivership of the prison health care system. State Makes a Last-Ditch Appeal Attorneys for the Arizona Department of Corrections, Rehabilitation and Reentry asked the U.S. Supreme Court this week to delay a court-ordered receivership of the state's prison health care system. The request comes after both a federal district court and the 9th U.S. Circuit Court of Appeals declined to pause the takeover. In the recent application, former U.S. Solicitor General Paul Clement, a representative of the department, argued that the state deserves more time to make its case before surrendering control of its operations, including oversight of its employees and health care budget. Roots of the Case The dispute began in 2012 when inmates sued the department, alleging the prison system's inadequate medical, mental health, and dental care amounted to cruel and unusual punishment under the Eighth Amendment. The case went through years of litigation and a failed settlement agreement. In 2023, U.S. District Judge Roslyn Silver ruled that the health care system was "grossly inadequate." The court ordered the prison healthcare system to comply with more than 150 "quality indicators," but according to court-appointed monitors, the department failed to comply with 131 of the measures. In light of this finding, Silver named Annette Chambers-Smith, former director of the Ohio Department of Rehabilitation and Correction, to take over as receiver effective Oct. 19. Arguments on Both Sides Clement argues receivership should be the last resort and that Silver moved to it too quickly. He asserts that the department has made measurable progress, including growing its health care staffing by more than 50%, expanding substance-use treatment access, and adopting a new care model. Corene Kendrick, deputy director of the American Civil Liberties Union National Prison Project, which represents the roughly 25,000 people incarcerated in Arizona prisons, called the department's request a "Hail Mary" and said Silver had given the department years of opportunities to comply before ordering receivership. What Happens Next The Supreme Court has not yet set a deadline for the plaintiffs to respond to the stay request. Separately, the 9th Circuit is now reviewing the merits of the receivership order itself. The department filed its opening brief on Sept. 15, and the plaintiffs' response is due Oct. 15. Information in this article was sourced from the Arizona Mirror .