The bill, known as the Clinical Teaching Subsidy Reform Act, proposes the enactment of section 3333.89 of the Revised Code, which establishes a framework for distributing clinical teaching subsidies to public medical schools in Ohio. The chancellor of higher education is tasked with annually allocating funds appropriated by the General Assembly to support clinical instruction and physician education. The distribution formula will allocate 90% of the subsidy based on the number of full-time equivalent students enrolled in clinical training years, while the remaining 10% will be based on performance metrics that reflect each school's contribution 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 how they utilized their subsidy funds, including details on clinical training sites, student 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 will take effect on July 1, 2026, and includes provisions for the chancellor to adopt rules for administration and enforcement, including definitions and data submission procedures.