[Federal Register Volume 61, Number 61 (Thursday, March 28, 1996)]
[Notices]
[Pages 13861-13864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7459]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services Administration
Availability of Funds for the National Health Service Corps Loan
Repayment Program and Grants for State Loan Repayment Programs
AGENCY: Health Resources and Services Administration, PHS.
ACTION: Notice.
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SUMMARY: The Health Resources and Services Administration (HRSA)
announces that applications will be accepted for fiscal year (FY) 1996
for: 1) awards for educational loan repayment under the National Health
Service Corps (NHSC) Loan Repayment Program (LRP) (Section 338B of the
Public Health Service (PHS) Act) and 2) grants to States to operate
loan repayment programs (Section 338I of the PHS Act).
This program announcement is subject to the final action on the
appropriation of funds. At this time, given the continuing resolutions
and the absence of a final FY 1996 appropriation for these programs,
the specific amount available is not known.
The HRSA, through this notice, invites health professionals to
apply for participation in the NHSC LRP and invites States to apply for
grants to operate State Loan Repayment Programs (LRPs). Awards will be
made for a 1-year budget period and for up to a 5-year project period.
The PHS is committed to achieving the health promotion and disease
prevention objectives of Healthy People 2000, a PHS-led national
activity for setting health priority areas. These programs will
contribute to the Healthy People 2000 objectives by improving access to
primary health care services through coordinated systems of care for
medically underserved populations in both rural and urban areas.
Potential applicants may obtain a copy of Healthy People 2000 (Full
Report, Stock No. 017-001-00474-01) or Healthy People 2000 (Summary
Report; Stock No. 017-001-00473-1) through the Superintendent of
Documents, Government Printing Office, Washington, D.C. 20402-9325
(telephone 202-783-3238).
PHS strongly encourages all grant recipients to provide a smoke-
free workplace and promote the non-use of all tobacco products. In
addition, Public Law 103-227, the Pro-Children Act of 1994, prohibits
smoking in certain facilities (or in some cases, any portion of a
facility) in which regular or routine education, library, day care,
health care or early childhood development services are provided to
children.
Part A of this notice contains specific information concerning the
NHSC LRP, and Part B contains specific information concerning grants
for State LRPs.
Part A--NHSC Loan Repayment Program
ADDRESSES: Application materials may be obtained by calling or writing
to: National Health Service Corps Loan Repayment Program, 2070 Chain
Bridge Road, Suite 450, Vienna, Virginia 22182-2536, 1-800-221-9393 or
(703) 734-6855. Completed applications must be returned to: Loan
Repayment Programs Branch, Division of Scholarships and Loan
Repayments, Bureau of Primary Health Care, HRSA, 4350 East-West
Highway, 10th Floor, Bethesda, Maryland 20814, (301) 594-4400. The 24-
hour toll-free phone number is 1-800-435-6464, and the FAX number is
301-594-4981. Applicants for the NHSC LRP will use HRSA Form 873
approved under Office of Management and Budget (OMB) Number 0915-0127.
DATES: The deadline for applications is April 30, 1996, or until all
appropriated funds have been obligated, whichever occurs first. Due to
limited funding, it is anticipated that all appropriated funds will be
obligated prior to April 30, 1996. The volume of applications is
historically three times greater than the number of contracts that can
be awarded, therefore, to receive consideration for funding, health
professionals must submit an application and proof of a job offer at an
eligible NHSC LRP Service Site.
Applications will be considered to be on time if they are either:
(1) received on or before the deadline date; or (2) postmarked on or
before the established deadline date and received in time for orderly
processing. Applicants should request a legibly dated U.S. Postal
Service postmark or obtain a legibly dated receipt from a commercial
carrier or U.S. Postal Service. Private metered postmarks are not
acceptable as proof of timely mailing. Applications received after the
announced closing date will not be considered for funding.
FOR FURTHER INFORMATION CONTACT: For further program information and
technical assistance, please contact Sharley L. Chen, Chief, Loan
Repayment Programs Branch, HRSA/BPHC/DSLR, at the above address, phone
or FAX number.
SUPPLEMENTARY INFORMATION: Section 338B of the PHS Act (42 U.S.C. 254l-
1) authorizes the Secretary to establish the NHSC LRP to help in
assuring, with respect to the provision of primary health services, an
adequate supply of trained primary care health professionals for the
NHSC. The NHSC is used by the Secretary to provide primary health
services in federally designated health professional shortage areas
(HPSAs). Primary health services are services regarding family
medicine, general internal medicine, general pediatrics, obstetrics and
gynecology, dentistry, or mental health, that are provided by
physicians or other health professionals.
Under the NHSC LRP, the Secretary will repay graduate and
undergraduate educational loans incurred by primary care health
professionals. For the first 2 years of full-time service at an
approved site in a federally designated HPSA, the Secretary will repay
up to $25,000 per year of the educational loans of such individual.
(There is a minimum 2-year service obligation.) For subsequent years of
full-time service, if the NHSC LRP contract is extended, the Secretary
will repay up to $35,000 per year. Payments may be made to participants
on an advanced quarterly basis (one quarter in
[[Page 13862]]
advance of service for the entire service obligation), on an advanced
annual basis (one year in advance of service for each year of service)
or on an advanced biennial basis (2 years in advance of service but
only for the first 2 years of a contract). The Secretary shall, in
addition to such payments, make payments to the individual in an amount
equal to 39 percent of the total amount of loan repayments made for the
taxable year involved. In addition to these amounts, NHSC LRP
participants will receive a salary from a private or public entity or,
in some cases, the Federal Government during the term of their service.
The Secretary will identify and make available annually a list of
those HPSA sites which will be available for service repayment under
the NHSC LRP. The Secretary will select applicants for consideration
for participation in the NHSC LRP according to the following criteria:
(1) The extent to which an individual's training in a health
profession or specialty is determined by the Secretary to be needed by
the NHSC in providing primary health services. From time to time, the
Secretary will publish a notice detailing the professions and
specialties most needed by the NHSC. Current professional and specialty
priorities are outlined in this notice at the end of Part A.
(2) The extent to which an individual is determined by the
Secretary to be committed to serve in a HPSA.
(3) The extent of an individual's demonstrated interest in
providing primary health services.
(4) The immediacy of an individual's availability for service.
Individuals who have a degree, have completed all necessary
postgraduate training in their professions and specialties (i.e., in
the case of physicians, are certified or eligible to sit for the
certifying examinations of a specialty board, and in the case of other
health professions, are certified in their specialty), and have a
current and unrestricted license to practice their profession in the
State in which they intend to serve, will receive highest
consideration.
(5) The academic standing, prior professional experience in a HPSA,
board certification, residency achievements, peer recommendations, and
other criteria related to professional competence or conduct will also
be considered.
In providing contracts under the NHSC LRP, priority will be given
to an applicant:
Whose health profession or specialty is most needed by the
NHSC;
Who has and whose spouse, if any, has characteristics that
increase the probability of continuing to serve in a HPSA upon
completion of his or her service obligation;
Who is from a disadvantaged background, subject to the
preceding paragraph.
Eligible Participants
To be eligible to participate in the NHSC LRP, an individual must:
(1)(a) Have a degree in allopathic or osteopathic medicine,
dentistry, or other health profession, or be certified, or in
accordance with State licensure requirements, as a nurse midwife, nurse
practitioner, or physician assistant. Other health professions include
clinical psychology, clinical social work, and dental hygiene;
(b) Be enrolled in an approved graduate training program in
allopathic or osteopathic medicine, dentistry, or other health
profession; or
(c) Be enrolled as a full-time student at an accredited school in a
State and in the final year of a course of study or program leading to
a degree in allopathic or osteopathic medicine, dentistry, or other
health profession.
(2) Be eligible for appointment as a commissioned officer in the
Regular or Reserve Corps of the PHS or be eligible for selection for
civilian service in the NHSC (e.g., must be a citizen or national of
the United States); and
(3) Submit an application for a contract to participate in the NHSC
LRP which contract describes the repayment of educational loans in
return for the individual serving for an obligated period.
Any individual who previously incurred an obligation for health
professional service to the Federal Government, a State Government, or
other entity is ineligible to participate in the NHSC LRP unless such
obligation is completely satisfied prior to the beginning of service
under this Program. Any individual who has breached an obligation for
health professional service to the Federal Government, a State
Government or other entity is ineligible to participate in the NHSC
LRP. Any individual who has a judgment lien against his or her property
for a debt to the United States is ineligible to participate in the
NHSC LRP until the judgment is paid in full or otherwise satisfied.
No loan repayments will be made for any professional practice
performed prior to the effective date of the NHSC LRP contract. All
individuals must have a current and unrestricted license to practice
their profession in the State of practice prior to beginning service
under this Program.
Professions and Specialties Needed by the NHSC
At this time, the Secretary has determined, based on community
demand, that priority will be given to: physicians (M.D.s and D.O.s)
who are certified or eligible to sit for the certifying examination in
the specialty boards of family practice, obstetrics/gynecology,
internal medicine, and pediatrics.
Other Award Information
This program is not subject to the provisions of Executive Order
12372, Intergovernmental Review of Federal Programs, since Executive
Order 12372 does not cover payments to individuals. In addition, this
program is not subject to the Public Health System Reporting
Requirements, since the requirements do not cover payment to
individuals.
The OMB Catalog of Federal Domestic Assistance number for this
program is 93.162.
Part B--Grants for State Loan Repayment Programs
ADDRESSES: Application materials for State Loan Repayment Programs may
be obtained from: Grants Management Officer, HRSA/BPHC/GMB, 4350 East-
West Highway, Room 11-1C3, Bethesda, Maryland 20814, (301) 594-4260,
FAX (301) 594-4073. Completed new and competing applications must be
returned to: Bureau of Primary Health Care, Grants Management Officer,
c/o Houston Associates, Inc., 1010 Wayne Avenue, Suite 240, Silver
Spring, Maryland 20910. Completed applications for budget period
renewals (i.e., non-competing continuations) must be returned to:
Grants Management Officer, HRSA/BPHC/GMB, 4350 East-West Highway, Room
11-1C3, Bethesda, Maryland 20814, (301) 594-4260 and FAX (301) 594-
4073. The Grants Management staff is available to provide assistance on
business management issues.
Application for these grants will be made on PHS Form 5161-1
(revised in July 1992) with revised face sheet DHHS Form 424, as
approved by the OMB under control number 0937-0189. Specific
instructions for completing the application form for this program will
be sent to any State requesting an application package.
DATES: Applications are due May 1, 1996. Applications will be
considered to have met the deadline if they are: (1) received on or
before the deadline date; or (2) postmarked on or before the deadline
date and received in time for
[[Page 13863]]
orderly processing. Applicants should request a legibly dated U.S.
Postal Service postmark or obtain a legibly dated receipt from a
commercial carrier or the U.S. Postal Service. Private metered
postmarks will not be accepted as proof of timely mailing. Late
applications will not be considered for funding and will be returned to
the applicant.
FOR FURTHER INFORMATION CONTACT: For general program information and
technical assistance, please contact Sharley L. Chen, Chief, Loan
Repayment Programs Branch, HRSA/BPHC/DSLR, 4350 East-West Highway, 10th
Floor, Bethesda, Maryland 20814, (301) 594-4400. The 24-hour toll-free
phone number is 1-800-435-6464, and the FAX number is (301) 594-4981.
SUPPLEMENTARY INFORMATION: Section 338I of the PHS Act (42 U.S.C. 254q-
1) authorizes the Secretary, acting through the Administrator, HRSA, to
make grants to States for the purpose of assisting the States in
operating programs as described in this notice for the repayment of
educational loans of health professionals in return for their practice
in federally designated health professional shortage areas (HPSAs) to
increase the availability of primary health services in federally
designated HPSAs.
Eligibility Requirements
State Loan Repayment Programs (LRPs) eligible for funding under
this announcement must meet the following requirements:
(1) Direct administration by a State agency;
(2) Payment of all or part of the qualifying educational loans
(including principal, interest, and related educational loan expenses)
of health professionals agreeing to provide primary health services in
federally designated HPSAs. ``Qualifying educational loans'' are
Government and commercial loans for actual costs paid for tuition,
reasonable educational expenses, and reasonable living expenses
relating to the graduate or undergraduate education of a health
professional;
(3) Assignment of participating health professionals only to public
and nonprofit private entities located in and providing primary health
services in federally designated HPSAs; and
(4) Participant contracts which provide remedies for any breach of
contract by participating health professionals.
Contract Requirements
Contracts provided by a State are not to be on terms that are more
favorable to health professionals than the most favorable terms the
Secretary is authorized to provide for contracts under the Federal NHSC
Loan Repayment Program under Section 338B of the PHS Act, including
terms regarding:
(1) The annual amount of payments provided on behalf of the
professionals regarding educational loans; and
(2) The availability of remedies for any breach of the contracts by
the health professionals involved.
States are required to develop contracts that reflect a minimum of
2 years of obligated full-time clinical service. The annual amount of
payments under a contract may not exceed $35,000, unless (1) this
excess amount is paid solely from non-Federal contributions, and (2)
the contract provides that the health professional involved will
satisfy the requirement of full-time clinical service under the
contract solely through the provision of primary health services in a
federally designated HPSA that is receiving priority for the purposes
of section 333A(a)(1), and is authorized to receive assignments of
individuals who are participating in the NHSC Scholarship Program.
No loan repayments will be made for any professional practice
performed prior to the effective date of the health professional's
State Loan Repayment Program contract, and no credit will be given for
any practice done while the provider is in a professional school or
graduate training program. Any individual who previously incurred an
obligation for health professional service to the Federal Government, a
State Government, or other entity is ineligible to participate in the
State LRP unless such obligation will be completely satisfied prior to
the beginning of service under this Program. Any individual who has
breached an obligation for health professional service to the Federal
Government, a State Government or other entity is ineligible to
participate in the State LRP. Any individual who has a judgment lien
against his or her property for a debt to the United States is
ineligible to participate in the State LRP until the judgment is paid
in full or otherwise satisfied.
Program Requirements
States seeking support under this notice for the cost of State LRPs
must:
(1) Provide adequate assurance that, with respect to the costs of
making loan repayments under contracts with health professionals, the
State will make available (directly or through donations from public or
private entities) non-Federal contributions in cash in an amount equal
to not less than $1 for each $1 of Federal funds provided in the grant.
The Federal grant funds and the State matching funds will be used only
for loan repayments to health professionals who have entered into
contracts with States. In determining the amount of non-Federal
contributions in cash that a State has to provide, no other Federal
funds may be used.
(2) Provide adequate assurance that the State will assign health
professionals participating in the program only to public and nonprofit
private entities located in and providing primary health services in
federally designated HPSAs, and identify each site available for
placement.
(3) Identify the State entity and key personnel who will administer
the grant.
(4) Provide an assurance that, with respect to contracts between
the State and the health professional, all contract breaches, by either
party, will be reported regularly.
Future Support
The Secretary must determine that the State has complied with each
of the agreements of the grant in order for funding to continue. Before
making a grant for a subsequent year of State LRP support, the
Secretary will, in the case of a State with one or more initial
breaches by health professionals of the repayment contracts, reduce the
amount of a grant to the State for the fiscal year involved. The grant
will be reduced by an amount equal to the sum of the expenditures of
Federal funds made regarding the State LRP contracts involved,
including interest on the amount of such expenditures, determined on
the basis of the maximum legal rate prevailing for loans made during
the time amounts were paid under the contract, as determined by the
Treasurer of the United States. The Secretary may waive the reduction
in the subsequent grant award if the Secretary determines that a health
professional's breach was attributable solely to the serious illness or
death of that professional.
Evaluation Criteria
For new and competing continuation grants the following criteria
will be used to evaluate State applications to determine which States
are to be supported under this notice: (a) The extent of State's need
for health professionals consistent with the health professions and
specialties identified later in this notice; (b) the extent to which
special consideration will be extended to federally designated HPSAs
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with large minority populations; (c) the number and type of providers
the State proposes to support through this program; (d) the
appropriateness of the proposed placements of State LRP recipients
(e.g., consistency and coordination with State-based plans to improve
access to primary health services for the underserved communities and
individuals); (e) the appropriateness of the qualifications, the
administrative and managerial ability of the staff to implement the
proposed project; (f) the suitability of the State's approach and the
degree to which the plan of a State is coordinated with Federal, State,
and other programs for meeting the State's health professional needs
and resources, including mechanisms for ongoing evaluation of the
program's activities; (g) the source and plans for the use of the State
match (the degree to which the State match exceeds the minimum
requirements or has increased over time, the amount of the match
relative to the needs and resources of the State); and (h) the adequacy
and appropriateness of the proposed budget.
For competing continuation applicants only, the following criteria
will be used: (a) the grantee's progress in achieving stated goals and
objectives for the previous year's grant including the impact the State
LRP placements have had on the State's short-term and long-term health
professional needs; (b) an assessment of the number of and the reasons
for initial breaches by health professionals of repayment contracts;
and (c) the grantee's history of compliance with reporting requirements
including goals, objectives, evaluation plans, organizational
structure, financial management, and personnel changes.
Professions and Specialties Needed
To be supported under this program, the State Program must
establish State priorities for the selection of health professionals
consistent with the NHSC LRP. At this time the Secretary has determined
that priority will be given to the following health professionals:
Physicians (M.D.s and D.O.s) who are certified or eligible to sit for
the certifying examination in the specialty boards of family practice,
obstetrics/gynecology, internal medicine, and pediatrics.
Other Award Information
This program is not subject to the Public Health System Reporting
Requirements.
This program is subject to the provisions of Executive Order 12372
concerning intergovernmental review of Federal programs as implemented
by 45 CFR part 100. Executive Order 12372 allows States the option of
setting up a system to review applications from within their States
under certain Federal programs. The application kit, to be made
available under this notice, will contain a listing of States which
have chosen to set up a review system and will provide a single point
of contact (SPOC) in the States for that review. Applicants (other than
federally recognized Indian tribal governments) should contact their
State SPOC as early as possible to alert them to the prospective
applications and receive any necessary instructions on the State
process. For proposed projects serving more than one State, the
applicant is advised to contact the SPOC of each affected State. The
due date for State process recommendations is 60 days after the
appropriate application deadline date. The BPHC does not guarantee that
it will accommodate or explain its response to State process
recommendations received after the due date.
The OMB Catalog of Federal Domestic Assistance number for this
program is 93.165.
Dated: March 21, 1996.
Ciro V. Sumaya,
Administrator.
[FR Doc. 96-7459 Filed 3-27-96; 8:45 am]
BILLING CODE 4160-15-P
