CORRECTIVE REPRINT PRIOR PRINTER'S NOS. 1324, 1659 PRINTER'S NO. 1662
No. 1093 Session of 2007
INTRODUCED BY SHAPIRO, GERBER, BAKER, BELFANTI, BIANCUCCI, BISHOP, CUTLER, DePASQUALE, FABRIZIO, GEORGE, GOODMAN, HELM, HENNESSEY, JAMES, LEACH, MARKOSEK, McILHATTAN, MOYER, MUSTIO, NAILOR, PETRONE, REED, STABACK, WHEATLEY, MAHONEY, SCAVELLO, MURT, SOLOBAY, WALKO, BOYD, GERGELY, KORTZ, M. SMITH, SURRA, GINGRICH, YOUNGBLOOD, KING, RAPP, LONGIETTI, OLIVER, KILLION, SAINATO, McILVAINE SMITH, HARHAI, CALTAGIRONE AND GALLOWAY, APRIL 18, 2007
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, MAY 23, 2007
AN ACT 1 Establishing the Physician Retention Loan Forgiveness Program in 2 the Pennsylvania Higher Education Assistance Agency; and 3 providing for powers and duties of the Pennsylvania Higher 4 Education Assistance Agency. 5 The General Assembly of the Commonwealth of Pennsylvania 6 hereby enacts as follows: 7 Section 1. Short title. 8 This act shall be known and may be cited as the Physician 9 Retention Loan Forgiveness Act. 10 Section 2. Purpose. 11 The purpose of this act is to improve patient access to 12 health care by assisting the Commonwealth with recruitment and 13 retention of physicians. 14 Section 3. Definitions. 15 The following words and phrases when used in this act shall
1 have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3 "Agency." The Pennsylvania Higher Education Assistance
4 Agency.
5 "Health care facility." As defined in section 103 of the act
6 of July 19, 1979 (P.L.130, No.48), known as the Health Care
7 Facilities Act.
8 "Physician." A medical doctor or doctor of osteopathy.
9 "Program." The Physician Retention Loan Forgiveness Program
10 established by this act.
11 Section 4. Program.
12 (a) Establishment.--The Physician Retention Loan Forgiveness
13 Program is established in the agency.
14 (b) Applications.--The agency shall promulgate guidelines
15 for the selection of candidates to the program based upon the
16 following criteria:
17 (1) Demonstrated need.
18 (2) Willingness to continue practicing as a physician in
19 this Commonwealth after completing the program.
20 (c) Eligibility.--A program applicant must be:
21 (1) A citizen of the United States.
22 (2) Licensed to practice medicine in this Commonwealth.
23 (d) Selection.--The agency shall give preference to
24 physicians in the following order:
25 (1) RECIPIENTS OF LOANS WHO BY CONTRACT WITH THE AGENCY <--
26 AGREE TO PRACTICE MEDICINE IN AN AREA OF THIS COMMONWEALTH
27 THAT IS REPORTED BY THE DEPARTMENT OF HEALTH AS MEDICALLY
28 UNDERSERVED OR IN A PRIMARY CARE HEALTH PROFESSIONAL SHORTAGE
29 AREA.
30 (1) (2) Commonwealth physicians completing training in <--
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1 this Commonwealth. 2 (2) (3) Out-of-State applicants completing training in <-- 3 this Commonwealth. 4 (3) (4) Commonwealth natives completing out-of-State <-- 5 training. 6 (4) (5) Out-of-State candidates completing out-of-State <-- 7 training. 8 (e) Verification.--The agency shall monitor and verify a 9 physician's fulfillment of all requirements under this act. 10 Section 5. Amount of loan forgiveness. 11 (a) Physicians practicing full time.--A physician accepted 12 into the program practicing full time may be reimbursed an 13 amount up to 100% of the total loan for physician training based 14 upon the following repayment assistance schedule: 15 (1) First year of service, 10%. 16 (2) Second year of service, 10%. 17 (3) Third year of service, 10%. 18 (4) Fourth year of service, 10%. 19 (5) Fifth year of service, 10%. 20 (6) Sixth year of service, 10%. 21 (7) Seventh year of service, 10%. 22 (8) Eighth year of service, 10%. 23 (9) Ninth year of service, 10%. 24 (10) Tenth year of service, 10%. 25 (b) Physicians practicing part time.--A physician accepted 26 into the program practicing part time may be reimbursed an 27 amount directly proportional to the number of hours worked of 28 the total loan for physician training based upon the following 29 repayment assistance schedule: 30 (1) First year of service, 10%. 20070H1093B1662 - 3 -
1 (2) Second year of service, 10%. 2 (3) Third year of service, 10%. 3 (4) Fourth year of service, 10%. 4 (5) Fifth year of service, 10%. 5 (6) Sixth year of service, 10%. 6 (7) Seventh year of service, 10%. 7 (8) Eighth year of service, 10%. 8 (9) Ninth year of service, 10%. 9 (10) Tenth year of service, 10%. 10 Section 6. Contract. 11 (a) General rule.--Physicians receiving loan forgiveness 12 shall enter into a contract with the agency. The contract shall 13 include, but not be limited to, the following terms and 14 conditions: 15 (1) The physician shall agree to practice not fewer than 16 ten full consecutive years in a licensed health care facility 17 in this Commonwealth immediately following completion of 18 training pursuant to the schedule provided in section 5. 19 (2) The physician shall agree to accept Medicare and 20 Medicaid patients. 21 (3) The physician shall agree not to discriminate 22 against patients based on the ability to pay. 23 (4) The physician shall permit the agency to monitor 24 compliance with the work requirement. 25 (5) The agency shall certify compliance of the physician 26 receiving a loan forgiveness award for years subsequent to 27 the initial year of the loan. 28 (6) The contract shall be renewable on an annual basis 29 upon certification by the agency that the physician has 30 complied with the terms of the contract. 20070H1093B1662 - 4 -
1 (7) The contract shall terminate if the physician dies, 2 is not able to perform the duties of a physician or is not 3 able to maintain the physician's license to practice medicine 4 due to physical or mental disability. 5 (8) If the physician's license to practice is suspended 6 or revoked, the agency shall have the authority to terminate 7 the physician's participation in the program and demand 8 repayment of all loan forgiveness payments rendered to date. 9 (9) A physician who fails to begin or complete the 10 obligations contracted for shall reimburse the Commonwealth 11 all amounts received under this act and interest thereon as 12 determined by the agency. Both the physician and the agency 13 shall make every effort to resolve conflicts in order to 14 prevent a breach of contract. 15 (b) Contract enforcement.--The agency shall have the 16 authority to seek garnishment of wages for the collection of 17 damages provided for in subsection (a)(9). 18 Section 7. Disqualification. 19 Any person who knowingly or intentionally procures, obtains 20 or aids another to procure or obtain loan forgiveness under this 21 act through fraudulent means shall be disqualified from 22 participation and shall be liable to the agency for an amount 23 equal to three times the amount obtained. 24 Section 8. Tax consequences. 25 Loan forgiveness payments received by a physician shall not 26 be considered taxable income for purposes of Article III of the 27 act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code 28 of 1971. 29 Section 9. Regulations. 30 The agency shall adopt regulations and procedures necessary 20070H1093B1662 - 5 -
1 to carry out the purposes of this act. 2 Section 10. Funding. 3 Loan forgiveness payments shall be made to the extent that 4 funds are appropriated to the Physician Retention Loan 5 Forgiveness Program by the General Assembly. 6 Section 11. Effective date. 7 This act shall take effect in 90 days. D5L24BIL/20070H1093B1662 - 6 -