More like hospitals refuse to self-fund residency slots. It's pretty bad when the number of doctors entering practice is fundamentally gated by residency positions funded by Congress.
The lack of residency positions is the result of lobbying by the AMA. What it the American medical association?
In there words:
"The American Medical Association, founded in 1847, represents more than 190 state societies and medical specialty associations, including internal medicine, family physicians, obstetricians and gynecologists, pediatric and emergency medicine. The AMA is the largest association of physicians—both MDs and DOs—and medical students in the U.S. Our mission is to “promote the art and science of medicine and the betterment of public health.”
It's a doctors old boys club and you can join if you're a doctor.