SCHOLARSHIP PROGRAM.

SEC. 201. SCHOLARSHIP PROGRAM. (a) Provision of Primary Health Services.— (1) In general.—Section 338A(p) of the Public Health Service Act (42 U.S.C. 2541 (a)) is amended by striking “Corps Scholarship” and all that follows and inserting the following: “Corps Scholarship Program to assure, with respect to the provision of primary health services pursuant to section 331(a)(2)— “(1) an adequate supply of physicians, dentists, certified nurse midwives, certified nurse practitioners, and physician assistants; and “(2) if needed by the Corps, an adequate supply of other health professionals.”. (2) Scholarship contract.—Section 338A(f)(1)(B)(iv) of the Public Health Service Act (42 U.S.C. 2541(f)(1)(B)(iv)) is amended in the matter after and below subclause (II) by inserting “as a provider of primary health services” before “in a health man-power shortage area”. (b) Recruitment and Retention.— (1) In general.— Section 338A(c) of the Public Health Service Act (42 U.S.C. 2541(c)) is amended— (A) by inserting “(1)” after the subsection designation; (B) by striking ”(1) a fair summary” and inserting “(A) a fair summary”; (C) by striking “(2) information respecting” and inserting “(B) information respecting”; 104 STAT. 3022 (D) by striking “The application form, contract form,” and inserting the following: “(2) The application form, contract form,”; and (E) by adding at the end the following new paragraph: “(3) (A) The Secretary shall distribute to health professions schools materials providing information on the Scholarship Program and shall encourage the schools to disseminate the materials to the students of the schools. “(B) (i) In the case of any health professional whose period of obligated service under the Scholarship Program is nearing completion, the Secretary shall encourage the individual to remain in a health manpower shortage area and to continue providing primary health services. “(ii) During the period in which a health professional is planning and making the transition to private practice from obligated service under the Scholarship Program, the Secretary may provide assistance to the professional regarding such transition if the professional is remaining in a health manpower shortage area and is continuing to provide primary health services. “(C) In the case of entities to which participants in the Scholarship Program are assigned under section 333, the Secretary shall encourage the entities to provide options with respect to assisting the participants in remaining in the health manpower shortage areas involved, and in continuing to provide primary health services, after the period of obligated service under the Scholarship Program is completed. The options with respect to which the Secretary provides such encouragement may include options regarding the sharing of a single employment position in the health professions by 2 or more health professionals, and options regarding the recruitment of couples where both of the individuals are health professionals.”. (2) Publicity.—Section 338A(c) of the Public Health Service Act, as amended by paragraph (1) of this subsection, is amended in paragraph (1)(B) by inserting before the period the following: “, including a statement of all factors considered in approving applications for participation in the Program and in making assignments for participants in the Program”. (c) Priority in Awarding Scholarships.—Section 338A(d) of the Public Health Service Act (42 U.S.C. 2541(d)) is amended to read as follows: “(d) (1) Subject to section 333A, in providing contracts under the Scholarship Program— “(A) the Secretary shall consider the extent of the demonstrated interest of the applicants for the contracts in providing primary health services; and “(B) may consider such other factors regarding the applicants as the Secretary determines to be relevant to selecting qualified individuals to participate in such Program. “(2) In providing contracts under the Scholarship Program, the Secretary shall give priority— “(A) first, to any application for such a contract submitted by an individual who has previously received a scholarship under this section or under section 758; “(B) second, to any application for such a contract submitted by an individual who has characteristics that increase the probability that the individual will continue to serve in a health104 STAT. 3023manpower shortage area after the period of obligated service pursuant to subsection (f) is completed; and “(C) third, subject to subparagraph (B), to any application for such a contract submitted by an individual who is from a disadvantaged background.”. (d) Reports to Congress.—Section 338A(i) of the Public Health Service Act (42 U.S.C. 2541(i)) is amended— (1) by amending the matter preceding paragraph (1) to read as follows: “(i) Not later than March 1 of each year, the Secretary shall submit to the Congress a report providing, with respect to the preceding fiscal year—and (2) (A) in paragraph (3), by striking “and” after the semicolon at the end; (B) by striking paragraph (4); and (C) by adding at the end the following new paragraphs: “(4) the amount of scholarship payments made for each of tuition, stipends, and other expenses, in the aggregate and at each educational institution for the school year beginning in such year and for prior school years; “(5) (A) the number, and type of health professions training, of individuals who have breached the contract under subsection (f) through any of the actions specified in subsection (a) or (b) of section 338E; and “(B) with respect to such individuals— “(i) the educational institutions with respect to which payments have been made or were to be made under the contract; “(ii) the amounts for which the individuals are liable to the United States under section 338E; “(iii) the extent of payment by the individuals of such amounts; and “(iv) if known, the basis for the decision of the individuals to breach the contract under subsection (f); and “(6) the effectiveness of the Secretary in recruiting health professionals to participate in the Scholarship Program, and in encouraging and assisting such professionals with respect to providing primary health services to health manpower shortage areas after the completion of the period of obligated service under such Program.”.