An estimated $ 1.4 billion was spent for stipends and fringe benefits for residents and fellows in 1978-79. No data are available on costs for supervision by teaching faculty and residency support, so it is impossible to realistically estimate total graduate medical education costs. Currently, the major source of support is reimbursement for medical services. This article reviews alternative approaches to graduate medical education financing and finds no compelling reason to shift from the present system.

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