The median cost to a hospital for each full-time resident in 2013 was $134,803. That includes a salary of between $50,000 and $80,000. Federal support translates into about $100,000 per resident per year. Researchers have calculated that the value of the work each resident performs annually is $232,726. Even without any subsidy having residents is a better than break-even deal. That explains why, even though the Balanced Budget Act of 1997 placed a cap on the number of residents supported by Medicare subsidies, between 2003 and 2012 the number of residents rose by about 20 percent.
