42 U.S.C. § 254m — Obligated service under contract

(a) Service in full-time clinical practice: Except as allowed under section 254n, anyone who signed a contract under section 254l or 254l–1 must work full-time in the clinical practice of their profession as a Corps member, for their full obligated-service period. The Secretary may count teaching as clinical practice for up to 20 percent of that period. But for Corps members in the teaching health centers graduate medical education program (section 256h), up to 50 percent of their teaching time can count toward their service obligation instead. (b) Notice to individual; information for informed decision; eligibility; notice to Secretary; qualification and appointment as commissioned officer; appointment as civilian member; designation of non-United States employee as member; deferment of obligated service: (1) If someone must provide obligated service, the Secretary must decide — at least 90 days before a certain date (defined in paragraph 5) — whether that person will serve as (A) a commissioned Service officer or federal civilian employee, or (B) another kind of Corps member, and must tell the person the decision. (2) If the Secretary decides the person should serve as a commissioned officer or civilian employee, the Secretary must, at least 60 days before that date, give the person enough information about the pros and cons of each option so they can decide. To be eligible for the commissioned-officer path, the person must tell the Secretary they want it at least 30 days before that date. If they qualify, the Secretary must appoint them as a commissioned officer, and designate them a Corps member, as soon as possible after that date. (3) If someone doesn't qualify as a commissioned officer, the Secretary must instead appoint them as a federal civilian employee and Corps member, as soon as possible after that date. (4) If the Secretary decides someone should serve as a Corps member who isn't a federal employee at all, the Secretary must designate them that way as soon as possible after that date. (5)(A) For Scholarship Program participants, "that date" is the date they finish the training for their degree — except (i) for anyone getting a medical or osteopathic degree after September 30, 2000, it's the date they finish a Secretary-approved residency, and (ii) at the person's request, the Secretary may push that date back until they finish advanced training like an internship or residency, as long as it fits the Corps' needs. (B) No internship, residency, or other advanced training time counts toward the obligated-service period itself. (C) For Loan Repayment Program participants, "that date" is (i) the date described above, for someone in their final year of school; (ii) the date they finish their graduate training program, for someone in one; and (iii) the date they sign their Loan Repayment agreement, for someone who already has a degree and finished graduate training. (c) Obligated service period; commencement: A person's obligated service is considered to start on whichever comes first: (1) the date they're appointed a Service officer or designated a Corps member under subsection (b)(3) or (b)(4), or (2) for someone with a private-practice agreement under section 254n, the date stated in that agreement. (d) Assignment of personnel: The Secretary must assign Scholarship Program contract-holders performing obligated service to shortage areas under sections 254d through 254h, 254j, and 254k. But if the Secretary decides there's no need, in a designated shortage area, for someone in that person's profession, and the person is a Service officer or federal civilian employee, the Secretary may instead assign them to serve their obligation full-time in that profession within whatever Department unit the Secretary chooses.