S/he’s saying that this argument > they've calculated that the marginal benefit from accepting a single resident at a lower cost does not outweigh the risk of

S/he’s saying that this argument > they've calculated that the marginal benefit from accepting a single resident at a lower cost does not outweigh the risk of being forced to provide the same discount to their existing residency positions. only holds up for schools with existing residency positions, which there are many without. If a residency were profitable without the subsidies, one would expect to see those non-teaching hospitals launching residency programs. Especially so because they don’t have to worry about threatening the subsidies which they aren’t receiving.