Is it illegal? I am at a major medical center, however, I am doing a dental specialty residency. The hospital classifies me as a resident, I attended the same orientation as all the medical residents, park in the same garage, have the same options for medical insurance, my id tag says "resident." But guess what - I don't get paid. In fact, I pay them "tuition" each year - although I can't borrow any federal money to pay this tuition because the medical center has me classified as a "resident" so I am ineligible. So we are stuck with private bank loans to pay the tuition & living expenses. There is an oral surgery residency at this hospital as well (another dental specialty), however, they get their PGY salary like all the other medical residents.
The more senior residents tell me that in the past, some of the residents got lawyers to see how it was possible to get away with this. Apparently they were told that the hospital can collect the GME money for us and doesn't have to necessarily pay us. It is a very politically involved mess and I wouldn't even know where to look as to whether it is legal or not. However, since we are a dental specialty, it's possible the ACGME rules are "exempted" from our program so the hospital is able to collect the GME money for us from the government but doesn't have to share it. We are not the only residency program like this - there are 2 other programs in my specialty at other medical centers where the residents are either not given the salary and charged "tuition" or they are given the PGY1 salary of 48K, but also charged a 25K tuition each year. The rest of the specialty programs around the country are either not hospital affiliated (about 40 programs located at dental schools who don't necessarily get GME money) or are hospital affiliated but pay their residents the PGY salary (approximately 5 programs out there like this).
How do they get away with this? Well, it's a competitive specialty - if I chose to turn my spot down after the match, there were 250 unmatched candidates who would have gladly taken the spot. I'm actually surprised this hasn't happened in medicine - couldn't there be a hospital out there who could offer a position to an unmatched candidate in a competitive field and say "hey - you can come to our accredited residency and be a dermatologist upon completion, but you will have to pay us an "educational fee" for each of your years here. And the amount of that "fee" is exactly equivalent to your PGY salary."
I'd be interested in hearing your opinions.