United Family Medicine residency leaders brief committee on funding mix and GME shortfall

Leaders of the United Family Medicine residency program and Allina Health told the House Higher Education Finance and Policy Committee on March 1 that the program relies on a mix of federal, state and supplemental funding but still faces funding shortfalls that could jeopardize sustainability if sources change.

Dr. Badrinath Konari, chief academic officer for Allina Health, described the United Family Medicine residency as a long‑standing program (about 30+ years) that trains family physicians who practice in both urban and rural Minnesota. Dr. Ravi Balasubramaniam, interim program director, said the program is ACGME‑accredited, operates 21 positions across three years (7‑7‑7) and receives roughly 250–268 applications annually. He said graduates practice across Minnesota, including metro and rural communities.

Dr. Robert Minor, Allina’s designated institutional official for graduate medical education, outlined the program’s funding mix. He told the committee the largest funding source is federal Medicare-related payments through CMS (about 48% of current funding profile), supplemental state funding (the presenter cited a program sometimes called the state’s supplemental GME support; about 35% in his overview) and the state appropriation under review through the higher‑education budget (about 17%). Minor said even with those sources Allina covers additional costs; he estimated the program still runs a direct program funding shortfall of approximately $500,000 and that faculty and resident salary/benefits create an overall funding need that exceeds current receipts.

Committee members asked whether the program can continue if federal GME funding changes and how the residency supports primary care in rural areas. Speakers said Minnesota’s Twin Cities region remains a strong center for family medicine residencies but noted an overall gap in providers and an approaching wave of retirements. The presenters said expansion to a 7‑7‑7 model was encouraged by the legislature about 10 years prior to increase training capacity.

The presenters noted that a typical first‑year family medicine resident trains primarily in hospital settings and builds a longitudinal outpatient panel that grows through the second and third years; a graduated resident typically finishes with a primary‑care panel of roughly 200–250 patients. Committee members asked for greater detail on ongoing revenue risk and the potential impact on workforce distribution if the state or federal funding mix were to change; presenters said they would provide additional financial detail on request.

The committee received the presentation but did not take immediate action on United Family Medicine funding during the session. Members thanked presenters and noted the program’s statewide role in training family physicians who serve rural and underserved communities.