Graduate Medical Education (GME)

GME Supplemental Funding

Introduction:

The Commonwealth of Virginia, like much of the United States, faces significant physician workforce shortages. This is expected to widen in the future, with rural regions seeing the largest declines in access to care. Currently, approximately 18% of physicians grew up in self-described rural areas, and 12% of these professionals currently work in non-metro counties. However, overall, only 6% of Virginia’s physician workforce works in non-metro areas of the state.¹ Research regarding rural residency and Teaching Health Center residency training shows that physicians are likely to remain in rural areas or an area similar to the area in which they have been trained after as little as 2 months of clinical time.

Supplemental Award:

Virginia Health Workforce Development Authority (VHWDA), in partnership with the Virginia Department of Medical Assistance Services (DMAS), offers supplemental Graduate Medical Education (GME) awards. The supplemental award payments shall be made quarterly for up to four (4) years, depending on the duration of the specialty training. Programs should note that, for this fiscal year, payments are capped at $100,000 annually, except for Obstetrics and Gynecology and Psychiatry, which are capped at $150,000 annually. Please note that all funding is subject to approval annually by the state budget.

For any training program at a facility whose Medicaid payments are capped by the Centers for Medicare and Medicaid Services (CMS), the supplemental payments for each qualifying resident shall be $50,000 from the general fund annually, minus any Medicare residency payments for which the program is eligible. A comprehensive, well-written application provides all the information necessary for a complete evaluation.

Eligibility:

1. The primary participating hospital site for an ACGME-accredited program must be enrolled in Virginia Medicaid at the time of application.
2. Remain a Medicaid-enrolled institution for the duration of the residents’ training years i.e. the duration of funding
3. Have a primary clinical site located in Virginia
4. Residency programs must have a favorable ACGME certificate at the time of application and for the duration of the residents’ training

Preference:

• Are in rural or Health Professional Shortage Areas (HPSAs).
• Serve a high percentage of Medicaid/uninsured patients
• Collaborate with Area Health Education Centers (AHECS), Critical Access Hospitals, Federally Qualified Health Centers, or other community-based organizations.
• Strong recruitment and retention of trainees within the HPSA’s of Virginia.

Specialty Areas for Funding Consideration:

• Addiction Medicine
• Emergency Medicine
• Family Medicine
• General Surgery
• Geriatrics
• Internal Medicine
• Obstetrics and Gynecology
• Pediatrics
• Psychiatry (Adult & Pediatric)
• Application for post-residency high-need fellowships may be considered

Funding Terms: Funding will be available for up to four years if the sponsoring institution maintains the total number of residencies, including the new residency. Payments are made quarterly.

Program Types:

Applicants may request funding for one or more individual residents and can request funding for one of two tracks – Track A or Track B, which are detailed below. There is currently no limit on the number of requests a program can make

Track A – Expand Residency Capacity Funding may be used to supplement the cost of temporarily increasing the resident complement of a program. This will establish a new position within an existing program that already has accreditation for the expanded number. Examples of eligible expenses include:

• Resident salary and benefits
• Malpractice insurance
• Rural rotation housing and travel
• Faculty stipends and rural preceptorships
• Administrative support

Track B – Resident Innovation Initiative Funding may be used to supplement expenses for the training of selected and named resident(s), within the current program complement. This initiative must enhance the residents’ training and strengthen retention in rural and underserved regions of the state. This program can include:

• Community-based research or pilot programs
• Technology or telehealth pilots
• Rural health infrastructure projects or access strategies
• Travel or housing to support rural work and training experiences
• Creation of rural rotations, which may include addiction medicine
• Collaborative program with another applicant hospital and its program

Resident Requirements:

All funded residents will be participants and will receive a Virginia Rural Health Leaders award upon graduation, which provides a preferential status for future state-supported programs and incentives. Participants must:

1. Participate in annual statewide educational activities
2. Submit a reflection at the end of each year of training
3. Possess a strong desire to practice in rural and/or health professional shortage areas in Virginia.

Application Schedule:

March 31, 2026 - VHWDA publishes the Application for Medicaid Graduate Medical Education Supplemental Payments to Residency Programs and Sponsoring Institutions, as well as on the VHWDA website
May 15, 2026 - Application deadline and electronic submission to VHWDA via platform
June 1, 2026 - DMAS is informed by VHWDA of the review committee’s selection of applicants to be awarded
June 15, 2026 - Sponsoring institutions and hospitals are notified about approval or disapproval of their applications
June 1, 2027 - Hospitals must certify to VHWDA and DMAS that they meet the criteria for supplemental payment and have filled all new residency slots
July 1, 2027 - Cohort 11 starts training program, and DMAS quarterly payments begin.  

Current Awardees

FY2027 Residency and Fellowship Supplemental Funding Awardees. 

As part of our continued collaboration with the Virginia Department of Medical Assistance Services (DMAS), the Virginia Health Workforce Development Authority (VHWDA) is proud to announce the awardees of the FY2027 Residency and Fellowship Supplemental Funding Program. This initiative supports accredited residency and fellowship programs that demonstrate a strong commitment to training the next generation of physicians in high-need specialties. The goal of this program is to retain physicians in the health professional shortage regions across the Commonwealth, meeting VHWDA’s mission to expand our physician workforce.

Applicant programs were selected through a competitive review process. They will now receive supplemental funding to expand the clinical training capacity at their established institutions. This funding will improve access to care, and strengthen the healthcare workforce in Virginia.

We congratulate all awardees and thank them for their dedication to training physicians who will serve where they are most needed. We look forward to continued collaboration with DMAS and our training programs. 

DMAS Payment Schedule

SFY 27 Q1 = State Fiscal Year 2027 Quarter 1