S.588 - Federal Government - A bill to amend title XVIII of the Social Security Act to increase the Medicare caps on graduate medical education positions for States with a shortage of residents.

Resident Physician Shortage Reduction Act of 2007 - Amends title XVIII (Medicare) of the Social Security Act to direct the Secretary of Health and Human Services to increase, over five cost reporting periods, the Medicare caps on the total number of full-time equivalent residents in the field of allopathic or osteopathic medicine (graduate medical education (GME) positions) for states with a shortage of residents.

Requires the aggregate number of such increases for a state to be at least 15, but no more than the state resident cap increase.