1 HF 516 – Residency Enrollment Requirements, Medical and Dental Schools (LSB1695HV.1) Staff Contact: Michael Peters (515.281.6934) michael.peters@legis.iowa.gov Fiscal Note Version – As amended and passed by the House Description House File 516 requires the Board of Regents (BOR) to adopt a policy which requires that no less than 80.0% of students admitted to the University of Iowa College of Medicine and College of Dentistry are Iowa residents or individuals who were enrolled at an Iowa postsecondary institution prior to application. The University of Iowa Hospitals and Clinics (UIHC) must meet the following requirements: • Prioritize the award of federal residency positions and fellowships to residents of Iowa or applicants who have earned an undergraduate degree or medical degree from an Iowa college, university, or school. • Provide the opportunity to participate in a rural rotation to those awarded a residency position. • Offer an interview for an available medical residency position to any applicant who is a resident of Iowa or who has earned an undergraduate degree or medical degree from an Iowa college, university, or school. The University of Iowa, in collaboration with the UIHC, must submit an annual report to the General Assembly regarding the residency of graduates and medical residents in the year following their completion of education or training. Additionally, by January 15, the UIHC must submit an annual report to the General Assembly and Governor with an overview on the interviews conducted for the various medical programs. Background The University of Iowa College of Medicine and College of Dentistry are the only public institutions in Iowa offering M.D. and D.D.S. degrees. The UIHC also operates primary care and specialty residency programs, which provide training for newly graduated physicians. The College of Medicine admitted 153 medical students in academic year (AY) 2024, and the College of Dentistry admitted 80 students. The BOR votes on the following academic year’s tuition rate increases in June of each year. An example of the Proposed 2024-2025 Tuition and Mandatory Fees is on the Board of Regents website. Assumptions • The AY 2024 Iowa resident enrollment was 70.0% for the College of Medicine. The College of Dentistry is also estimated at 70.0%. • The FY 2026 nonresident tuition for the College of Medicine is $59,000 per year, compared to $38,000 for resident students. • The FY 2026 nonresident tuition for the College of Dentistry is $84,000 per year, compared to $59,000 for resident students. • Tuition is estimated to increase by 3.4% per year based on the last 10 years of tuition increases. • The number of total students is expected to remain constant compared to FY 2026. Fiscal Note Fiscal Services Division 2 • Nonresident students will decrease from 30.0% to 20.0% of annual admissions over four years. Fiscal Impact House File 516 is estimated to reduce revenues to the University of Iowa Colleges of Medicine and Dentistry by $529,000 in FY 2027, $1.1 million in FY 2028, $1.7 million in FY 2029, and $2.3 million in FY 2030. Figure 1 shows estimated tuition revenue decreases. Figure 1 — Decreased Annual Tuition Revenue Sources Board of Regents University of Iowa /s/ Jennifer Acton April 3, 2025 Doc ID 1525316 The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request. www.legis.iowa.gov Year Resident TuitionNonresident TuitionDifferenceStudentsDifference FY 2026 38,200$ 58,900$ -20,700$ 0 0$ FY 2027 39,500 60,900 -21,400 15 -321,000 FY 2028 40,800 63,000 -22,200 30 -666,000 FY 2029 42,200 65,100 -22,900 45 -1,030,500 FY 2030 43,600 67,300 -23,700 60 -1,422,000 Year Resident TuitionNonresident TuitionDifferenceStudentsDifference FY 2026 58,900$ 84,000$ -25,100$ 0 0$ FY 2027 60,900 86,900 -26,000 8 -208,000 FY 2028 63,000 89,900 -26,900 16 -430,400 FY 2029 65,100 93,000 -27,900 24 -669,600 FY 2030 67,300 96,200 -28,900 32 -924,800 College of Medicine Revenues College of Dentistry Revenues