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Committee hears $6 million physician‑residency grant proposal to boost in‑state retention
Summary
Senate Bill 216 would create a residency investment program intended to expand physician residency slots in Montana hospitals. Sponsors said the state would provide about $2 million per participating hospital (three large hospitals were used in the fiscal estimate), costing roughly $6 million total.
Senate Bill 216, the Physicians Workforce Investment Act, received a hearing in the Senate Finance and Claims Committee focusing on the fiscal note and program design to expand residency training in Montana.
Sponsor testimony said the bill would fund hospital residency programs and estimated approximately $2 million per hospital if larger hospitals participate, with an illustrative total of $6 million for three hospitals. The sponsor cited evidence that roughly 65% of medical residents remain in the state where they complete residency as a principal rationale for the investment.
Jay Phillips, deputy commissioner at the Department of Labor and Industry, appeared as an informational witness and answered questions about program alignment with existing efforts. Committee members noted Section E funding already authorized roughly $5 million for residency work this session and questioned whether the bill duplicates that appropriation. The sponsor said the bill would create a grant program hospitals apply to, and that award amounts could be adjusted if more or fewer hospitals participate.
In executive action Senator Esp moved to pass Senate Bill 216. Several members, including the subsection of the committee responsible for Section E appropriations, said the budget already contains funds for similar residency supports and expressed reluctance to add another $6 million appropriation. Senator Harvey substituted a motion to table; the committee approved the motion to table and Senate Bill 216 was tabled.
Why it matters: supporters argued that state investment in residency slots is a lever to keep physicians practicing in Montana; opponents and some members questioned duplication with recently authorized Section E funding and whether the state should fully underwrite the program rather than require local matches.
Vote: during executive action the committee substituted a motion to table and the bill was tabled.
