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42 U.S.C. § 254nPrivate practice

submitted 82 years ago by Pub. L. 94-484 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 741 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets a Corps member who owes service switch into private practice in a shortage area instead, if they sign an agreement to keep serving there. The Secretary can cover moving costs, sell them used equipment later, and help pay for malpractice insurance.

(a) Application for release of obligations; conditions: As far as state law allows, the Secretary must release a person from all or part of their service obligation under section 254m(a) — or the older section 234 as it stood before September 30, 1977 — if the person applies and signs an agreement to work full-time in private clinical practice (including as a salaried employee at an entity that directly provides care) for the rest of their obligated period. (1) If the person got a Scholarship or Loan Repayment Program award and is already serving as a Corps member in a shortage area, they must practice in that same area — except that someone whose loan payment came under the Loan Repayment Program must practice in whatever shortage area the Secretary picks. (2) Anyone else must practice in a shortage area the Secretary selects. (b) Written agreement; actions to ensure compliance: (1) The agreement must (A) require the person, while in private practice under it, to follow the same rules that section 254g imposes on hosting entities, and (B) include any other terms the Secretary requires to meet the section's goals. (2) The Secretary must take whatever action is appropriate to make sure the person follows the agreement's conditions. (c) Breach of service contract: If someone breaks their original Scholarship or Loan Repayment contract by failing to start or finish their service obligation under a section 254n private-practice agreement, the Secretary may instead let them fulfill their obligation as a regular Corps member. (d) Travel expenses: The Secretary may pay all or part of the cost of moving the person, their family, and their belongings to their new private-practice location. (e) Sale of equipment and supplies: Once the private-practice agreement ends, the Secretary may — despite any other law — sell the person the government equipment and property they used to provide services, at fair market value. The Secretary can sell for less if the person truly can't afford full value. (f) Malpractice insurance: Using money appropriated under section 254k, the Secretary may pay a private-practice participant's malpractice insurance cost, plus the smaller of: (1) a yearly cap that shrinks each year — (A) $10,000 in year one, (B) $7,500 in year two, (C) $5,000 in year three, and (D) $2,500 in year four — or (2) the difference between what the person actually earned (before taxes) and what they would have earned as a regular Corps member that year. (g) Technical assistance: On request, the Secretary must give technical help to anyone released under this section, to help them meet their private-practice agreement.
the actual law source: uscode.house.gov ↗public domain
(a) Application for release of obligations; conditions

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 1 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) Written agreement; actions to ensure compliance
(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) Breach of service contract

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) Travel expenses

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) Sale of equipment and supplies

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) Malpractice insurance

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) Technical assistance

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.

Source credit: (July 1, 1944, ch. 373, title III, § 338D, formerly title VII, § 753, as added Pub. L. 94–484, title IV, § 408(b)(1), Oct. 12, 1976, 90 Stat. 2285; amended Pub. L. 96–538, title IV, § 403, Dec. 17, 1980, 94 Stat. 3192; renumbered § 338C and amended Pub. L. 97–35, title XXVII, § 2709(a), (d), Aug. 13, 1981, 95 Stat. 908, 910; renumbered § 338D and amended Pub. L. 100–177, title II, § 201(2), title III, § 307, Dec. 1, 1987, 101 Stat. 992, 1005; Pub. L. 101–597, title IV, § 401(b)[(a)], Nov. 16, 1990, 104 Stat. 3035; Pub. L. 107–251, title III, § 312, Oct. 26, 2002, 116 Stat. 1650.)

history & why it existsrecord from the source credit
  • 1944Enacted · Pub. L. 94-484 · 90 Stat. 2285
  • 1980Amended · Pub. L. 96-538 · 94 Stat. 3192
  • 1981Amended · Pub. L. 97-35 · 95 Stat. 908, 910
  • 1987Amended · Pub. L. 100-177 · 101 Stat. 992, 1005
  • 1990Amended · Pub. L. 101-597 · 104 Stat. 3035
  • 2002Amended · Pub. L. 107-251 · 116 Stat. 1650

A history note hasn’t been published yet. The record shows enactment by Pub. L. 94-484 on 1944-07-01.

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