To increase the supply of doctors, the government has become directly involved in physician education. Of the $673 million appropriated for health manpower programs in 1972, 55 percent was for medical schools. Legislation to date has emphasized expansion of medical education output in the aggregate, but increasing attention has been directed to the composition of the output with regard to the type and location of practice and to the equality of educational opportunity for ethnic minorities and women. This paper examines changes that have occurred in the medical education system concurrently with the growth of federal programs designed to influence that system's output. The data indicate that the system has responded very favorably. Capacity is expanding rapidly, discrimination against women has apparently disappeared, medical schools are seeking out and admitting qualified individuals from minority groups, and financial barriers to medical education have been lowered. 19 pp.