[chimeracoder]

> This seems to be the logical fallacy. Hospitals neither get to confer medical degrees nor award board certifications. They cannot just magically create residents out of thin air, they are restricted by supply. No amount of Matrix Architect speak makes them do so.

You seem confused about the question at hand. As has been explained multiple times, including in the original article, there are more medical degrees granted every year than there are residency slots available at hospitals.

The whole question is why hospitals don't take advantage of the excess supply of of medical graduates by creating more residency positions.