Improving Physician Access in Teaching Hospitals (PATH) Act of 2011

Improving Physician Access in Teaching Hospitals (PATH) Act of 2011 - Amends title XVIII (Medicare) of the Social Security Act with respect to distribution of additional resident positions as they affect calculation of payments for direct graduate medical education (DME) costs.

States that, if a hospital's resident level for each of the five most recent cost reporting periods is less than the otherwise applicable resident limit, then the otherwise applicable resident limit shall be reduced by the difference between it and the highest reference resident level for any of those five cost reporting periods. Excepts from this reduction requirement a hospital: (1) located in a rural area with fewer than 250 beds, or (2) that has had in effect a voluntary residency reduction plan.

Requires the Secretary of Health and Human Services (HHS) to increase the otherwise applicable resident limit (create additional residency slots) for applicant hospitals according to a specified formula that takes into account the aggregate reduction in limits attributable to this Act.

Expands the primary care bonus to certain underserved specialties, such as psychiatry or neurology.

Amends the Internal Revenue Code to allow a small physician practice residency credit.