H.R. 870 — Physicians for Underserved Areas Act

This section revises the criteria under Medicare for redistributing direct graduate medical education (GME) residency slots from closed hospitals (i.e., payments to teaching hospitals for resident training costs). Specifically, it (1) eliminates one priority category for such redistribution (item (cc)) in the list of eligible hospitals, redesignates the subsequent category as third (from fourth), and updates its cross-reference; and (2) replaces the prior "likelihood of filling" criterion for certain hospitals with a requirement to demonstrate the likelihood of starting to utilize the positions within two years and filling them within five years. The changes apply to hospitals closing on or after the date of enactment.