State officials say July 1 is the target date to launch a project to train 460 physicians at 14 Iowa hospitals over the next four years. Governor Kim Reynolds is seeking $150 million in federal funding for the initiative.
“We know that doctors often decide to practice where they do their residency,” Reynolds said during a news conference Tuesday, “which means this truly could be a game-changer for our state.”
While the Trump Administration has been focused on budget cutting lately, Reynolds told reporters she feels good about this request for federal funding.
“We’re going to make a strong case for it, for approval. We feel pretty confident,” Reynolds said “The good news is there are a lot of other states that are already doing this…Remember, we’re setting up state dollars to draw down federal dollars, so we have some skin in the game as well.”
Shelly Russell, CEO of the Mitchell County Regional Health Center — a 25 bed hospital in Osage — is chair-elect of Iowa Hospital Association Board of Trustees. She said the medical residencies are important, particularly in rural Iowa, because hospitals need to more staff.
“Hospitals don’t have the option of closing early if they can’t cover a shift,” she Russell. “Illnesses, injuries and emergencies happen every day — day and night.”
Reynolds has submitted a bill to the Iowa legislature to address medical residencies as well as other health-related issues, like maternal health. She proposes raising the Medicaid reimbursement rate for patients with a complex pregnancy.
“Today Iowa reimbursement doctors and hospitals and physicians at a single, bundled Medicaid rate, regardless of the number of office visits or the risk level of the pregnancy,” Reynolds said, “and that doesn’t really make sense for doctors or mothers.”
Reynolds also proposes expanding a state program that currently provides state funding to four hospitals that have become hubs for specialized care. Kevin DeRonde is C-E-O of Mahaska Health Partnership in Oskaloosa, one of the regional centers in the program today. He told reporters its heart doctors saw 800 new patients in the past eight months and the hospital has become a regional hub for deliveries.
“Mahaska Health has seen a 102% increase in births, with 267 born in 2024. We are on pace to deliver over 400 babies in 2025,” he said. “Our OB-GYN specialists opened and expanded the first ever fertility services clinic in southeast Iowa, providing specialized care for 50 couples.”
The governor’s health care package also would consolidate and double student loan repayment programs for doctors who agree to practice in Iowa.