36-2172. Primary care provider loan repayment program; purpose; eligibility; default; civil penalty; exemption

A. The primary care provider loan repayment program is established in the department to pay off portions of education loans taken out by physicians, dentists and mid-level providers.

B. The department shall prescribe application and eligibility requirements that are consistent with the requirements of the national health service corps loan repayment program (42 Code of Federal Regulations part 62). To be eligible to participate in the primary care provider loan repayment program, an applicant shall meet all of the following requirements:

1. Have completed the final year of a course of study or program approved by recognized accrediting agencies for higher education in a health profession licensed pursuant to title 32 or hold an active license in a health profession licensed pursuant to title 32.

2. Demonstrate current or prospective employment with a public or nonprofit entity located and providing services in a federally designated health professional shortage area in this state as designated under 42 Code of Federal Regulations section 62.52.

3. Contract with the department to serve and be qualified to serve in dentistry, family practice, pediatrics, obstetrics or internal medicine.

C. In addition to the requirements of subsection B of this section, an applicant who is a physician shall meet both of the following requirements:

1. Have completed a professional residency program in family practice, pediatrics, obstetrics or internal medicine.

2. Contract with the department to serve for at least two years.

D. A mid-level provider or dentist who participates in the primary care provider loan repayment program shall contract with the department to provide services pursuant to this section for at least two years.

E. In making recommendations for the primary care provider loan repayment program, the department shall give priority to applicants who intend to practice in rural areas most in need of primary care services. In determining the areas most in need of primary care services, the department shall consider areas that are either designated as medically underserved by the department or have been assigned to a high-degree-of-shortage group pursuant to 42 Code of Federal Regulations section 62.52.

F. All loan repayment contract obligations are subject to the availability of monies and legislative appropriation. The department may cancel or suspend a loan repayment contract based on unavailability of monies for the program. The department is not liable for any claims, actual damages or consequential damages arising out of a cancellation or suspension of a contract.

G. This section does not prevent the department from encumbering an amount that is sufficient to assure payment of each primary care provider loan for a period of up to two years.

H. The department shall issue program monies to pay primary care provider loans that are limited to the amount of principal, interest and related expenses of educational loans according to the following schedule:

1. For physicians and dentists:

(a) For the first year of service, a maximum of twenty thousand dollars.

(b) For the second year of service, a maximum of twenty thousand dollars.

(c) For the third year of service, a maximum of twenty-two thousand dollars.

(d) For the fourth year of service, a maximum of twenty-five thousand dollars.

2. For mid-level providers:

(a) For the first year of service, a maximum of seven thousand five hundred dollars.

(b) For the second year of service, a maximum of seven thousand five hundred dollars.

(c) For the third year of service, a maximum of nine thousand dollars.

(d) For the fourth year of service, a maximum of ten thousand five hundred dollars.

I. A physician, dentist or mid-level provider who enters into an original contract may apply for additional contracts for one or two years, subject to approval by the department.

J. A participant in the primary care provider loan repayment program who breaches the loan repayment contract by failing to begin or to complete the obligated services is liable for liquidated damages in an amount equivalent to twice the total uncredited amount of the loan repayment contracted for on a prorated monthly basis. The department may waive the liquidated damages provisions of this subsection if it determines that death or permanent physical disability accounted for the failure of the participant to fulfill the contract. The department may prescribe additional conditions for default, cancellation, waiver or suspension that are consistent with the national health service corps loan repayment program (42 Code of Federal Regulations sections 62.27 and 62.28).

K. Notwithstanding section 41-192, the department may retain legal counsel and commence whatever actions are necessary to collect loan payments and charges if there is a default or a breach of a contract entered into pursuant to this section.

36-2172. Primary care provider loan repayment program; purpose; eligibility; default; civil penalty; exemption

A. The primary care provider loan repayment program is established in the department to pay off portions of education loans taken out by physicians, dentists and mid-level providers.

B. The department shall prescribe application and eligibility requirements that are consistent with the requirements of the national health service corps loan repayment program (42 Code of Federal Regulations part 62). To be eligible to participate in the primary care provider loan repayment program, an applicant shall meet all of the following requirements:

1. Have completed the final year of a course of study or program approved by recognized accrediting agencies for higher education in a health profession licensed pursuant to title 32 or hold an active license in a health profession licensed pursuant to title 32.

2. Demonstrate current or prospective employment with a public or nonprofit entity located and providing services in a federally designated health professional shortage area in this state as designated under 42 Code of Federal Regulations section 62.52.

3. Contract with the department to serve and be qualified to serve in dentistry, family practice, pediatrics, obstetrics or internal medicine.

C. In addition to the requirements of subsection B of this section, an applicant who is a physician shall meet both of the following requirements:

1. Have completed a professional residency program in family practice, pediatrics, obstetrics or internal medicine.

2. Contract with the department to serve for at least two years.

D. A mid-level provider or dentist who participates in the primary care provider loan repayment program shall contract with the department to provide services pursuant to this section for at least two years.

E. In making recommendations for the primary care provider loan repayment program, the department shall give priority to applicants who intend to practice in rural areas most in need of primary care services. In determining the areas most in need of primary care services, the department shall consider areas that are either designated as medically underserved by the department or have been assigned to a high-degree-of-shortage group pursuant to 42 Code of Federal Regulations section 62.52.

F. All loan repayment contract obligations are subject to the availability of monies and legislative appropriation. The department may cancel or suspend a loan repayment contract based on unavailability of monies for the program. The department is not liable for any claims, actual damages or consequential damages arising out of a cancellation or suspension of a contract.

G. This section does not prevent the department from encumbering an amount that is sufficient to assure payment of each primary care provider loan for a period of up to two years.

H. The department shall issue program monies to pay primary care provider loans that are limited to the amount of principal, interest and related expenses of educational loans according to the following schedule:

1. For physicians and dentists:

(a) For the first year of service, a maximum of twenty thousand dollars.

(b) For the second year of service, a maximum of twenty thousand dollars.

(c) For the third year of service, a maximum of twenty-two thousand dollars.

(d) For the fourth year of service, a maximum of twenty-five thousand dollars.

2. For mid-level providers:

(a) For the first year of service, a maximum of seven thousand five hundred dollars.

(b) For the second year of service, a maximum of seven thousand five hundred dollars.

(c) For the third year of service, a maximum of nine thousand dollars.

(d) For the fourth year of service, a maximum of ten thousand five hundred dollars.

I. A physician, dentist or mid-level provider who enters into an original contract may apply for additional contracts for one or two years, subject to approval by the department.

J. A participant in the primary care provider loan repayment program who breaches the loan repayment contract by failing to begin or to complete the obligated services is liable for liquidated damages in an amount equivalent to twice the total uncredited amount of the loan repayment contracted for on a prorated monthly basis. The department may waive the liquidated damages provisions of this subsection if it determines that death or permanent physical disability accounted for the failure of the participant to fulfill the contract. The department may prescribe additional conditions for default, cancellation, waiver or suspension that are consistent with the national health service corps loan repayment program (42 Code of Federal Regulations sections 62.27 and 62.28).

K. Notwithstanding section 41-192, the department may retain legal counsel and commence whatever actions are necessary to collect loan payments and charges if there is a default or a breach of a contract entered into pursuant to this section.