The proposed bill, known as the Clinical Teaching Subsidy Reform Act, aims to establish section 3333.89 of the Revised Code, which outlines a framework for distributing clinical teaching subsidies to public medical schools in Ohio. The bill defines "public medical school" to include institutions such as The Ohio State University College of Medicine and the University of Cincinnati College of Medicine, among others. The chancellor of higher education is tasked with annually distributing funds appropriated by the General Assembly to support clinical instruction and physician education. The distribution formula allocates 90% of the subsidy based on the number of full-time equivalent students enrolled in clinical training and 10% based on performance metrics related to the development and retention of physicians in the state.

Additionally, the bill mandates that each public medical school report annually to the chancellor on the use of subsidy funds, clinical training sites, residency match outcomes, and workforce retention statistics. The chancellor is responsible for reviewing these reports to ensure compliance with the intended use of the funds. The act also requires the chancellor to adopt rules for administration and enforcement, including definitions and data submission procedures. The provisions of this act are set to take effect on July 1, 2026.