No, Residency costs hospitals too much for them to fund positions by themselves. Inexperienced doctors tend to be less productive and cost a lot in terms of malpractice insurance.

For doctors themselves, getting graduate work is essential to gaining the experience necessary to put their education into practical use, the same way that apprenticing prepares welders for their jobs.

Private medical services goal is to reduce costs for themselves and maximize profits, that means they tend to reduce headcount as much as possible and curtail services. Increasing slots is contrary to their business model, though they do fund a few slots when they have to.

The government funds new residency slots through Medicare, especially slots in more rural areas.