The proposed bill, known as the Clinical Teaching Subsidy Reform Act, aims to establish a new section, 3333.89, in the Revised Code of Ohio. This section defines "public medical school" to include several institutions, such as The Ohio State University College of Medicine and the University of Cincinnati College of Medicine, among others. The bill mandates that the chancellor of higher education annually distribute a clinical teaching subsidy to these public medical schools, using a formula that allocates 90% of the funds based on the number of full-time equivalent students in clinical training and 10% based on performance metrics related to the development and retention of physicians in Ohio.

Additionally, the bill requires public medical schools to report annually to the chancellor on how they utilized the subsidy funds, including details on clinical training sites, residency match outcomes, and workforce retention statistics. The chancellor is tasked with reviewing these reports to ensure proper use of the funds and is also responsible for adopting rules to administer the section, which will include definitions and data submission procedures. The act is set to take effect on July 1, 2026.