Primary and Public Health Scholarship Program

Part E of title VII of the Public Health Service Act (42 U.S.C. 294n et seq.) is amended by adding at the end the following:

Primary and Public Health Scholarship Program

775.

Scholarship program

(a)

In general

The Secretary shall establish and carry out the Primary and Public Health Scholarship Program (in this section referred to as the Scholarship Program) under which the Secretary shall enter into contracts with all eligible individuals in accordance with this section. (b)

Eligibility

To be eligible to participate in the Scholarship Program, an individual must— (1)be accepted for enrollment, or be enrolled, as a full-time student— (A)in an accredited (as determined by the Secretary) institution of higher education that is a public graduate medical school in a State that is funded by such State; and (B)in a course of study or program, offered by such institution and approved by the Secretary, leading to a degree in medicine, osteopathic medicine, dentistry, or other health profession, or an appropriate degree from a graduate program of behavioral and mental health; (2)submit an application to participate in the Scholarship Program in such form and manner and at such time as specified by the Secretary; and (3)sign and submit to the Secretary, at the time of submittal of such application, a written contract (described in subsection (d)) to accept payment of a scholarship and to serve (in accordance with this section) for a period of not less than 4 years at a health care facility that serves a designated primary care or public health shortage area located in the State in which the institution is located. (c)

Participation in program

(1)

In general

An individual becomes a participant in the Scholarship Program only upon the approval of the Secretary of the individual’s application submitted under subsection (b)(2) and the Secretary’s acceptance of the contract submitted by the individual under subsection (b)(3). (2)

Notice

The Secretary shall provide written notice to an individual promptly upon the Secretary’s approving, under paragraph (1), of the individual’s participation in the Scholarship Program. (d)

Contract

The contract described in this subsection is a written contract between the Secretary and an individual that contains— (1)an agreement that— (A)subject to paragraph (2), the Secretary agrees to provide the individual with a scholarship (described in subsection (e)) for each such school year during the period of years (not to exceed four school years), during which the individual is pursuing a course of study described in subsection (b)(1)(B); and (B)subject to paragraph (2), the individual agrees— (i)to accept provision of such a scholarship to the individual; (ii)to maintain enrollment in a course of study described in subsection (b)(1)(B) until the individual completes the course of study; (iii)while enrolled in such course of study, to maintain an acceptable level of academic standing (as determined under regulations of the Secretary by the educational institution offering such course of study); and (iv)to serve as a health professional for a period of full-time service of not less than 4 years at a health care facility serving an area— (I)that is located in the State in which the individual attended the institution of higher education described in subsection (b)(1)(A); and (II)that is designated by the Secretary, in consultation with the Governor of such State, as being a primary care or public health shortage area; (2)a provision that any financial obligation of the United States arising out of a contract entered into under this section and any obligation of the individual which is conditioned thereon, is contingent upon funds being appropriated for scholarships under this section; (3)a statement of the damages to which the United States is entitled, under subsection (f) for the individual’s breach of the contract; and (4)such other statements of the rights and liabilities of the Secretary and of the individual, not inconsistent with the provisions of this title. (e)

Scholarships

(1)

In general

Subject to subparagraph (3), a scholarship provided to a student for a school year under a written contract under the Scholarship Program shall consist of payment to, or (in accordance with paragraph (2)) on behalf of, the student of the amount of the tuition of the student in such school year. (2)

Payments to schools

The Secretary may contract with an institution of higher education described in subsection (b)(1)(A), in which a participant in the Scholarship Program is enrolled, for the payment to the educational institution of the amounts of tuition and other reasonable educational expenses described in paragraph (1). Payment to such an educational institution may be made without regard to section 3648 of the Revised Statutes (31 U.S.C. 529). (3)

Limitation on revenue increase

In no case shall the Secretary provide a scholarship under this section with respect to a student for a school year for an institution of higher education described in subsection (b)(1)(A) if the percentage of revenues of the institution that such institution receives from tuition for the year (taking into account the provision of this section) would increase by more than 3 percentage points from the year prior to the date of the enactment of this section. (f)

Breach of scholarship

(1)

Failure to complete course of study

An individual who has entered into a written contract with the Secretary under this section and who— (A)fails to maintain an acceptable level of academic standing in the institution of higher education described in subsection (b)(1)(A) in which he is enrolled (such level determined by the institution under regulations of the Secretary); (B)is dismissed from such institution for disciplinary reasons; or (C)voluntarily terminates the training in such an institution for which he is provided a scholarship under such contract, before the completion of such training,

in lieu of any service obligation arising under such contract, shall be liable to the United States for the amount that is equal to the sum of the total amount which has been paid to the individual, or on the behalf of the individual, under the contract plus any amount of interest, as determined by the Secretary.

(2)

Failure to complete service obligation

If an individual breaches his written contract by failing to begin such individual’s service obligation under this section, or to complete such service obligation, the United States shall be entitled to recover from the individual an amount that is equal to the sum of— (A)the total amount which has been paid to the individual, or on his behalf of the individual, under the contract; (B)any amount of interest, as determined by the Secretary; and (C)the amount that is equal to 10 percent of the amount described in subparagraph (A). (g)

Designated primary care or public health shortage area

For purposes of this section, the term designated primary care or public health shortage area means, with respect to a State, an area designated by the Secretary, in consultation with the Governor of the State, as being without sufficient practicing primary care physicians to ensure access to primary care, public health care services, and preventive care. (h)

Applicability of certain provisions

The provisions of subpart III of part D of title III shall, except as inconsistent with this section, apply to the program established under this section in the same manner and to the same extent as such provisions apply to the National Health Service Corps Scholarship Program established under such subpart.