The hospital closed the program, they didn't lose it. There was talk about re-opening the program, but it does not make strong financial sense for the hospital or doctors. GME money is give based upon the percentage of Medicare billing. BMC mainly serves uninsured and Medicaid patients, so they don't get much GME money. So to keep the program open, they lose money. The doctors lose money b/c you cannot charge an assistant fee if you have a residency program.
It is the best thing for students not having residents: more cases, patients, and opportunities for students. I've had numerous C level cases and research opportunities that I would never have had anywhere else. That is why I stand firm that currently BMC is the best 4th year clerkship in the U.S.