Yes, from what I understand they take they empty spots and divvy them up to kids that didn't qualify from other regions.
Here is the section from the rules and policies...
If any region is unable to field a team of seven gymnasts per age division, the open slots will be filled based upon the Regional Team results from the previous year.
1) If one spot needs to be filled, the 8th place athlete from the region whose regional team won that divisionthe previous year will fill the spot. All athletes from the 1st place region involved in the tie for 8th place willbe used to fill the empty slots before any other region's athletes are assigned.
2) If more than one spot needs to be filled in an age division and there were no ties in the 1st place region, the nextindividual added is the 8th place athlete from the region whose regional team placed 2nd the previous year.
3) Only athletes from the regions that placed 1st through 3rd in the specific age division the previous year mayfill the incomplete squads.
c. If a region fills at least five (5) out of the seven (7) slots, they will compete as a regional team in that agedivision. The added athletes from the other regions will compete as individuals.
d. If a region has less than five (5) qualifiers in any one age division, the squad of seven is to be filled according tothe procedure stated above in b.2), but the squad will not be considered for team score; all of the gymnasts willcompete as individuals only.