Who pays the salary for medical residents ...

[procon]

3. Most funding comes from the Department of Health and Human Services

and Medicare that subsidize teaching hospitals for resident training programs. The bigger and more prestigious university hospitals also have additional funding sources. Residency is like on the job training, and the availability of slots are dependent of the amount of funding available. The average salary is around a $50K and includes the usual employee benefits package.

Now, with the sequester cuts and Republicans gleefully cutting everything, especially health services, there are even fewer residency openings; a requirement for most specialties.