§254n — Title 42 The Public Health and Welfare | U.S. Code

Summary

If state law allows, the Secretary can release a person from all or part of their required public service if the person applies and signs a written agreement to work full-time in private clinical practice in their health profession for the same remaining time. If the person got a scholarship or loan repayment and is serving in a health professional shortage area when they apply, they must practice in that same shortage area or, for some loan recipients, in a shortage area chosen by the Secretary. Other people must practice in a shortage area the Secretary picks. The agreement requires the person to follow rules that apply to health service organizations and any other terms the Secretary needs. The Secretary will check that the agreement is followed and can let someone who broke an earlier contract serve in the Corps instead. The Secretary may pay reasonable moving costs for the person, their family, and belongings. After the agreement ends, the Secretary may sell government equipment the person used at fair market value, or for less if the person cannot pay. Using funds authorized under section 254k, the Secretary may pay the person’s malpractice insurance and an extra annual amount up to $10,000 the first year, $7,500 the second, $5,000 the third, and $2,500 the fourth, or the lesser amount equal to the difference between Corps pay and the person’s net income before taxes. The Secretary must also provide technical help on request.

Title 42, §254n

The Public Health and Welfare — Source: USLM XML via OLRC

(a)The Secretary shall, to the extent permitted by, and consistent with, the requirements of applicable State law, release an individual from all or part of his service obligation under section 254m(a) of this title or under section 234 11 See References in Text note below. of this title (as in effect on September 30, 1977) if the individual applies for such a release under this section and enters into a written agreement with the Secretary under which the individual agrees to engage for a period equal to the remaining period of his service obligation in the full-time private clinical practice (including service as a salaried employee in an entity directly providing health services) of his health profession—

(1)in the case of an individual who received a scholarship under the Scholarship Program or a loan repayment under the Loan Repayment Program and who is performing obligated service as a member of the Corps in a health professional shortage area on the date of his application for such a release, in the health professional shortage area in which such individual is serving on such date or in the case of an individual for whom a loan payment was made under the Loan Repayment Program and who is performing obligated service as a member of the Corps in a health professional shortage area on the date of the application of the individual for such a release, in the health professional shortage area selected by the Secretary; or

(2)in the case of any other individual, in a health professional shortage area (designated under section 254e of this title) selected by the Secretary.

(b)(1)The written agreement described in subsection (a) shall—

(A)provide that, during the period of private practice by an individual pursuant to the agreement, the individual shall comply with the requirements of section 254g of this title that apply to entities; and

(B)contain such additional provisions as the Secretary may require to carry out the objectives of this section.

(2)The Secretary shall take such action as may be appropriate to ensure that the conditions of the written agreement prescribed by this subsection are adhered to.

(c)If an individual breaches the contract entered into under section 254l or 254l–1 of this title by failing (for any reason) to begin his service obligation in accordance with an agreement entered into under subsection (a) or to complete such service obligation, the Secretary may permit such individual to perform such service obligation as a member of the Corps.

(d)The Secretary may pay an individual who has entered into an agreement with the Secretary under subsection (a) an amount to cover all or part of the individual’s expenses reasonably incurred in transporting himself, his family, and his possessions to the location of his private clinical practice.

(e)Upon the expiration of the written agreement under subsection (a), the Secretary may (notwithstanding any other provision of law) sell to the individual who has entered into an agreement with the Secretary under subsection (a), equipment and other property of the United States utilized by such individual in providing health services. Sales made under this subsection shall be made at the fair market value (as determined by the Secretary) of the equipment or such other property, except that the Secretary may make such sales for a lesser value to the individual if he determines that the individual is financially unable to pay the full market value.

(f)The Secretary may, out of appropriations authorized under section 254k of this title, pay to individuals participating in private practice under this section the cost of such individual’s malpractice insurance and the lesser of—

(1)(A)$10,000 in the first year of obligated service;

(B)$7,500 in the second year of obligated service;

(C)$5,000 in the third year of obligated service; and

(D)$2,500 in the fourth year of obligated service; or

(2)an amount determined by subtracting such individual’s net income before taxes from the income the individual would have received as a member of the Corps for each such year of obligated service.

(g)The Secretary shall, upon request, provide to each individual released from service obligation under this section technical assistance to assist such individual in fulfilling his or her agreement under this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 234 of this title, referred to in subsec. (a), was repealed by Pub. L. 94–484, title IV, § 408(b)(1), Oct. 12, 1976, 90 Stat. 2281, effective Oct. 1, 1977. Codification Section was formerly classified to section 294v of this title prior to its renumbering by Pub. L. 97–35.

Prior Provisions

A prior section 338D of act July 1, 1944, was renumbered section 338E by section 201(2) of Pub. L. 100–177 and is classified to section 254o of this title.

Amendments

2002—Subsec. (b). Pub. L. 107–251 added subsec. (b) and struck out former subsec. (b) which related to written agreements,

Regulations

, and actions to ensure compliance. 1990—Subsec. (a)(1), (2). Pub. L. 101–597 substituted reference to health professional shortage area for reference to health manpower shortage area wherever appearing. 1987—Subsec. (a). Pub. L. 100–177, § 307(1)–(3), made technical amendment to reference to section 254m of this title to reflect renumbering of corresponding section of original act, in introductory provisions, in par. (1) inserted “who received a scholarship under the Scholarship Program or a loan repayment under the Loan Repayment Program and” after “individual” the first time it appeared as the probable intent of Congress, and inserted “or in the case of an individual for whom a loan payment was made under the Loan Repayment Program and who is performing obligated service as a member of the Corps in a health manpower shortage area on the date of the application of the individual for such a release, in the health manpower shortage area selected by the Secretary”, and in par. (2) inserted “selected by the Secretary”. Subsec. (b). Pub. L. 100–177, § 307(4), inserted at end “The Secretary shall take such action as may be appropriate to ensure that the conditions of the written agreement prescribed by this subsection are adhered to.” Subsec. (c). Pub. L. 100–177, § 307(5), inserted reference to section 254l–1. Subsec. (e). Pub. L. 100–177, § 307(b), designated par. (2) as entire subsection and struck out par. (1) which read as follows: “The Secretary may make such arrangements as he determines are necessary for the individual for the use of equipment and supplies and for the lease or acquisition of other equipment and supplies.” 1981—Subsec. (a). Pub. L. 97–35, § 2709(d)(1), inserted provision respecting requirements of applicable State law, substituted references to section 254m(a) and 234 of this title, for reference to section 294u(a) of this title, and in cl. (2) struck out priority requirement under section 254f(c) of this title. Subsec. (b)(1)(B). Pub. L. 97–35, § 2709(d)(2), inserted “(i)” before “shall not” and added cl. (ii). Subsecs. (c) to (g). Pub. L. 97–35, § 2709(d)(3), added subsecs. (c) to (g). 1980—Subsec. (a). Pub. L. 96–538 substituted in par. (2) “which has” for “which (A) has” and struck out subpar. (B) which referred to a health manpower shortage area which has a sufficient financial base to substain private practice and provide the individual with income of not less than the income of members of the Corps, and struck out provision following par. (2) which provided that in the case of an individual described in par. (1), the Secretary release the individual from his service obligation under this subsection only if the Secretary determines that the area in which the individual is serving met the requirements of cl. (B) of par. (2).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Oct. 1, 1977, see section 408(b)(1) of Pub. L. 94–484, set out in part as a note under section 254l of this title.

Savings Provision

Credit for Period of Internship or Residency Before September 30, 1977, Towards Service ObligationSee section 408(b)(2) of Pub. L. 94–484, set out as a note under section 254l of this title.

§254n Private practice