There is little argument that the physician is the most expensive form of health manpower or that the physician is a critical decision-maker in allocating resources for the production of health-care services. Thus, their education and orientation have been singled out as intervention points when public concerns have emerged on cost containment and access to services. The primary goal of this paper is an exploration of several issues regarding the status of financing of graduate medical education, some of the policy issues surrounding graduate medical education financi:'g, and some residual research questions. The issues handled include the financing of graduate internships and residencies through federal support, state and local support, patient revenues, and out-of-pocket dollars; graduate medical education speciality choice, geographic distribution, salary differentials, and future trends; anj objectives, options, and issues in financing graduate medical education, including the possible implications of national health insurance. (JMF)