DO (or allo)ortho funding issues

[corona 247]

A classmate of mine did not match DO ortho this year. He contacted a program to inquire about open Transitional intern spots and was told although they did have them, he would not be considered for a spot because of Medicare funding issues, as the ortho program would not have enough funding for his 5th year of residency since he had spent a year as an transitional intern.

It was my understanding that the traditional year would not "set the clock" of Medicare funding, and so one could again reapply and enter a residency without funding issues (vs taking say an EM residency and then trying to switch to ortho, and having funding issues)

Can anyone clarify for me?

Thanks!

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[Buckeye(OH)]

That was my understanding as well.