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Hospitals with residency programs would face Medicare cuts for skipping DO and MD applicant reports

In committeeH.R. 2314Latest action

Sponsor: Diana Harshbarger · Representative · TN

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Official title: FAIR Act

119th Congress

Topics: Health care

Introduced:

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In plain words

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HR 2314 requires residency-training hospitals to publicly report DO and MD applicant acceptance data or face 2% Medicare payment cuts starting October 2026.

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What does this do?

HR 2314 requires hospitals that run medical residency training programs to report to the federal government how many applicants they received from osteopathic (DO) and allopathic (MD) medical schools, and how many from each group were accepted. Hospitals must also confirm they consider applicants from both school types and that they accept either the DO or MD licensing exam if a score is required. The reported information would be posted publicly online for applicants, researchers, and the general public to view.

Who does it affect?

The bill primarily affects hospitals that operate residency training programs, the post-medical-school positions new doctors must complete before practicing independently. It also affects medical school graduates, especially those from osteopathic schools, who have historically faced barriers competing for residency spots against allopathic graduates.

Why does it matter?

Hospitals that do not submit the required reports could see their Medicare payments reduced, creating a financial incentive to comply. The bill does not establish quotas or mandate acceptance of any specific number of applicants from either school type, but makes hospital selection practices visible to the public.

What does it cost, and who pays?

  • 2% Medicare cut per noncompliant year
  • Penalties start October 2026
  • No mandatory quotas or spending

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Where does it stand?

  1. IntroducedMar 25, 2025
  2. House committeeYou are here · Mar 25, 2025
  3. House vote
  4. Senate
  5. The president's desk

Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.

Latest action: — Referred to the House Committee on Ways and Means.

Data as of October 9, 2026
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