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Bill

SB 246

Medi-Cal: graduate medical education payments.

2025-2026 Regular Session Introduced by Anna Caballero and 5 co-sponsors

SB 246 adjusts California Medi-Cal's graduate medical education payment rates to teaching hospitals that train resident physicians, affecting physician workforce development and healthcare facility funding.

Chaptered by Secretary of State. Chapter 308, Statutes of 2025.
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Bill Summary · SB 246

Legislative bill overview

SB 246 modifies California's Medi-Cal program to adjust graduate medical education (GME) payments to healthcare facilities that train resident physicians. The bill establishes new payment methodologies or rates for reimbursing teaching hospitals and medical centers for the costs associated with physician residency training programs.

Why is this important

Graduate medical education is essential for producing new physicians in California and the nation. How the state reimburses these training costs directly affects which hospitals can afford to operate residency programs, which in turn influences the geographic distribution of physician training and availability of medical professionals in different regions of the state.

Potential points of contention

  • Funding source clarity: The bill's financing mechanism and whether it increases state costs or redirects existing Medi-Cal funds is not specified, raising questions about fiscal impact on the broader healthcare budget
  • Regional equity: Changes to GME payment structures could disproportionately benefit or disadvantage certain teaching hospitals or regions, potentially affecting physician supply in underserved areas
  • Program accessibility: Modifications to reimbursement rates could affect the ability of different types of teaching hospitals to participate in or expand residency programs, influencing training opportunities for medical students

Compiled from official sources — confirm details with the bill’s official record.

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