H0001B1872A01685     AJM:JSL  06/09/09     #90        A01685

AMENDMENTS TO HOUSE BILL NO. 1

Sponsor: REPRESENTATIVE SHAPIRO

Printer's No. 1872

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Amend Bill, page 1, line 2, by inserting after "Program"

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and the Physician Retention Loan Forgiveness Program in the

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Pennsylvania Higher Education Assistance Agency; providing for

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powers and duties of the Pennsylvania Higher Education

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Assistance Agency

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Amend Bill, page 22, by inserting between lines 10 and 11

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CHAPTER 5

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PHYSICIAN RETENTION LOAN FORGIVENESS

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Section 501.  Purpose.

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The purpose of this chapter is to improve patient access to

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health care by assisting the Commonwealth with recruitment and

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retention of physicians.

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Section 502.  Definitions.

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The following words and phrases when used in this chapter

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shall have the meanings given to them in this section unless the

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context clearly indicates otherwise:

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"Agency."  The Pennsylvania Higher Education Assistance

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Agency.

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"Health care facility."  As defined in section 103 of the act

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of July 19, 1979 (P.L.130, No.48), known as the Health Care

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Facilities Act.

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"Physician."  A medical doctor or doctor of osteopathy.

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"Program."  The Physician Retention Loan Forgiveness Program

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established by this chapter.

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Section 503.  Program.

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(a)  Establishment.--The Physician Retention Loan Forgiveness

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Program is established in the agency.

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(b)  Applications.--The agency shall promulgate guidelines

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for the selection of candidates to the program based upon the

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following criteria:

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(1)  Demonstrated need.

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(2)  Willingness to continue practicing as a physician in

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this Commonwealth after completing the program.

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(c)  Eligibility.--A program applicant must be:

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(1)  A citizen of the United States.

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(2)  Licensed to practice medicine in this Commonwealth

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and specializing in one of the following:

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(i)  Internal medicine.

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(ii)  Family medicine.

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(iii)  Pediatrics.

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(iv)  Obstetrics and gynecology.

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(d)  Selection.--The agency shall give preference to

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physicians in the following order:

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(1)  Recipients of loans who by contract with the agency

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agree to practice medicine in an area of this Commonwealth

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that is reported by the Department of Health as medically

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underserved or in a primary care health professional shortage

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area.

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(2)  Commonwealth physicians completing training in this

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Commonwealth.

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(3)  Out-of-State applicants completing training in this

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Commonwealth.

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(4)  Commonwealth natives completing out-of-State

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training.

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(5)  Out-of-State candidates completing out-of-State

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training.

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(e)  Verification.--The agency shall monitor and verify a

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physician's fulfillment of all requirements under this chapter.

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Section 504.  Amount of loan forgiveness.

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(a)  Physicians practicing full time.--A physician accepted

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into the program practicing full time may be reimbursed an

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amount up to 100% of the total loan for physician training based

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upon the following repayment assistance schedule:

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(1)  First year of service, 10%.

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(2)  Second year of service, 10%.

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(3)  Third year of service, 10%.

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(4)  Fourth year of service, 10%.

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(5)  Fifth year of service, 10%.

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(6)  Sixth year of service, 10%.

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(7)  Seventh year of service, 10%.

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(8)  Eighth year of service, 10%.

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(9)  Ninth year of service, 10%.

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(10)  Tenth year of service, 10%.

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(b)  Physicians practicing part time.--A physician accepted

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into the program practicing part time may be reimbursed an

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amount directly proportional to the number of hours worked of

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the total loan for physician training based upon the following

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repayment assistance schedule:

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(1)  First year of service, 10%.

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(2)  Second year of service, 10%.

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(3)  Third year of service, 10%.

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(4)  Fourth year of service, 10%.

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(5)  Fifth year of service, 10%.

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(6)  Sixth year of service, 10%.

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(7)  Seventh year of service, 10%.

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(8)  Eighth year of service, 10%.

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(9)  Ninth year of service, 10%.

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(10)  Tenth year of service, 10%.

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Section 505.  Contract.

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(a)  General rule.--Physicians receiving loan forgiveness

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shall enter into a contract with the agency. The contract shall

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include, but not be limited to, the following terms and

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conditions:

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(1)  The physician shall agree to practice not fewer than

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ten full consecutive years in a licensed health care facility

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in this Commonwealth immediately following completion of

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training pursuant to the schedule provided in section 5.

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(2)  The physician shall agree to accept Medicare and

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Medicaid patients.

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(3)  The physician shall agree not to discriminate

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against patients based on the ability to pay.

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(4)  The physician shall permit the agency to monitor

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compliance with the work requirement.

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(5)  The agency shall certify compliance of the physician

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receiving a loan forgiveness award for years subsequent to

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the initial year of the loan.

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(6)  The contract shall be renewable on an annual basis

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upon certification by the agency that the physician has

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complied with the terms of the contract.

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(7)  The contract shall terminate if the physician dies,

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is not able to perform the duties of a physician or is not

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able to maintain the physician's license to practice medicine

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due to physical or mental disability.

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(8)  If the physician's license to practice is suspended

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or revoked, the agency shall have the authority to terminate

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the physician's participation in the program and require

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repayment of all loan forgiveness payments rendered to date.

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(9)  A physician who fails to begin or complete the

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obligations contracted for shall reimburse the Commonwealth

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all amounts received under this chapter and interest thereon

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as determined by the agency. Both the physician and the

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agency shall make every effort to resolve conflicts in order

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to prevent a breach of contract.

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(b)  Contract enforcement.--The agency shall have the

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authority to seek garnishment of wages for the collection of

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damages provided for in subsection (a)(9).

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Section 506.  Disqualification.

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Any person who knowingly or intentionally procures, obtains

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or aids another to procure or obtain loan forgiveness under this

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chapter through fraudulent means shall be disqualified from

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participation and shall be liable to the agency for an amount

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equal to three times the amount obtained.

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Section 507.  Tax consequences.

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Loan forgiveness payments received by a physician shall not

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be considered taxable income for purposes of Article III of the

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act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

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of 1971.

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Section 508.  Regulations.

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The agency shall adopt regulations and procedures necessary

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to carry out the purposes of this chapter.

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Section 509.  Funding.

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Loan forgiveness payments shall be made from the Health Care

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Provider Retention Account.