PRINTER'S NO. 2270
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1680
Session of
2019
INTRODUCED BY KORTZ, DALEY AND McCLINTON, JUNE 27, 2019
REFERRED TO COMMITTEE ON EDUCATION, JUNE 27, 2019
AN ACT
Establishing the Physician Retention Loan Forgiveness Program in
the Pennsylvania Higher Education Assistance Agency; and
providing for powers and duties of the Pennsylvania Higher
Education Assistance Agency.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Physician
Retention Loan Forgiveness Act.
Section 2. Purpose.
The purpose of this act is to improve patient access to
health care by assisting the Commonwealth with recruitment and
retention of physicians.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." The Pennsylvania Higher Education Assistance
Agency.
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"Health care facility." As defined in section 103 of the act
of July 19, 1979 (P.L.130, No.48), known as the Health Care
Facilities Act.
"Physician." A medical doctor or doctor of osteopathy.
"Program." The Physician Retention Loan Forgiveness Program
established by this act.
Section 4. Program.
(a) Establishment.--The Physician Retention Loan Forgiveness
Program is established in the agency.
(b) Applications.--The agency shall promulgate guidelines
for the selection of candidates to the program based upon the
following criteria:
(1) Demonstrated need.
(2) Willingness to continue practicing as a physician in
this Commonwealth after completing the program.
(c) Eligibility.--A program applicant must be:
(1) A citizen of the United States.
(2) Licensed to practice medicine in this Commonwealth
and specializing in one of the following:
(i) Internal medicine.
(ii) Family medicine.
(iii) Pediatrics.
(iv) Obstetrics and gynecology.
(d) Selection.--The agency shall give preference to
physicians in the following order:
(1) Recipients of loans who by contract with the agency
agree to practice medicine in an area of this Commonwealth
that is reported by the Department of Health as medically
underserved or in a primary care health professional shortage
area.
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(2) Commonwealth physicians completing training in this
Commonwealth.
(3) Out-of-State applicants completing training in this
Commonwealth.
(4) Commonwealth residents completing out-of-State
training.
(5) Out-of-State candidates completing out-of-State
training.
(e) Verification.--The agency shall monitor and verify a
physician's fulfillment of all requirements under this act.
Section 5. Amount of loan forgiveness.
(a) Physicians practicing full time.--A physician accepted
into the program practicing full time may be reimbursed an
amount up to 100% of the total loan for physician training at a
rate of 10% per year for each year of practice in this
Commonwealth.
(b) Physicians practicing part time.--A physician accepted
into the program practicing part time may be reimbursed an
amount directly proportional to the number of hours worked of
the total loan for physician training based upon the following
repayment assistance schedule:
(1) First year of service, 5%.
(2) Second year of service, 5%.
(3) Third year of service, 10%.
(4) Fourth year of service, 10%.
(5) Fifth year of service, 10%.
(6) Sixth year of service, 10%.
(7) Seventh year of service, 10%.
(8) Eighth year of service, 10%.
(9) Ninth year of service, 10%.
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(10) Tenth year of service, 20%.
Section 6. Contract.
(a) General rule.--Physicians receiving loan forgiveness
shall enter into a contract with the agency. The contract shall
include the following terms and conditions:
(1) The physician shall practice not fewer than 10 full
consecutive years in a licensed health care facility in this
Commonwealth immediately following completion of training
pursuant to the schedule provided in section 5.
(2) The physician shall accept Medicare and Medicaid
patients.
(3) The physician may not discriminate against patients
based on the ability to pay.
(4) The physician shall permit the agency to monitor
compliance with the work requirement.
(5) The agency shall certify compliance of the physician
receiving a loan forgiveness award for years subsequent to
the initial year of the loan.
(6) The contract shall be renewable on an annual basis
upon certification by the agency that the physician has
complied with the terms of the contract.
(7) The contract shall terminate if the physician dies,
is not able to perform the duties of a physician or is not
able to maintain the physician's license to practice medicine
due to physical or mental disability.
(8) If the physician's license to practice is suspended
or revoked, the agency may terminate the physician's
participation in the program and demand repayment of all loan
forgiveness payments rendered to date.
(9) A physician who fails to begin or complete the
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obligations contracted for shall reimburse the Commonwealth
all amounts received under this act and interest on those
amounts as determined by the agency. Both the physician and
the agency shall make every effort to resolve conflicts in
order to prevent a breach of contract.
(b) Contract enforcement.--The agency may seek garnishment
of wages for the collection of damages provided for in
subsection (a)(9).
Section 7. Disqualification.
A person who knowingly or intentionally procures, obtains or
aids another to procure or obtain loan forgiveness under this
act through fraudulent means shall be disqualified from
participation in the program and shall be liable to the agency
for an amount equal to three times the amount obtained.
Section 8. Tax consequences.
Loan forgiveness payments received by a physician shall not
be considered taxable income for purposes of Article III of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971.
Section 9. Regulations.
The agency shall adopt regulations and procedures necessary
to carry out the purposes of this act.
Section 10. Funding.
Loan forgiveness payments shall be made to the extent that
funds are appropriated to the agency for the purpose of the
program by the General Assembly.
Section 11. Effective date.
This act shall take effect in 90 days.
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