1997 Minnesota Statutes

     144.1494 Rural physicians. 

    Subdivision 1.    Creation of account.  A rural 
 physician education account is established in the health care 
 access fund.  The commissioner shall use money from the account 
 to establish a loan forgiveness program for medical residents 
 agreeing to practice in designated rural areas, as defined by 
 the commissioner.  

    Subd. 2.    Eligibility.  To be eligible to participate 
 in the program, a prospective physician must submit a letter of 
 interest to the commissioner.  A resident who is accepted must 
 sign a contract to agree to serve at least three of the first 
 five years following residency in a designated rural area. 

    Subd. 3.    Loan forgiveness.  For each fiscal year 
 after 1995, the commissioner may accept up to 12 applicants who 
 are medical residents, including four applicants who are 
 pediatric residents, six applicants who are family practice 
 residents, and two applicants who are internal medicine 
 residents, for participation in the loan forgiveness program.  
 If the commissioner does not receive enough applicants per 
 fiscal year to fill the number of residents in the specific 
 areas of practice, the resident applicants may be from any area 
 of practice.  The 12 resident applicants may be in any year of 
 training; however, priority must be given to the following 
 categories of residents in descending order:  third year 
 residents, second year residents, and first year residents.  
 Applicants are responsible for securing their own loans.  
 Applicants chosen to participate in the loan forgiveness program 
 may designate for each year of medical school, up to a maximum 
 of four years, an agreed amount, not to exceed $10,000, as a 
 qualified loan.  For each year that a participant serves as a 
 physician in a designated rural area, up to a maximum of four 
 years, the commissioner shall annually pay an amount equal to 
 one year of qualified loans.  Participants who move their 
 practice from one designated rural area to another remain 
 eligible for loan repayment.  In addition, in any year that a 
 resident participating in the loan forgiveness program serves at 
 least four weeks during a year of residency substituting for a 
 rural physician to temporarily relieve the rural physician of 
 rural practice commitments to enable the rural physician to take 
 a vacation, engage in activities outside the practice area, or 
 otherwise be relieved of rural practice commitments, the 
 participating resident may designate up to an additional $2,000, 
 above the $10,000 yearly maximum.  

    Subd. 4.    Penalty for nonfulfillment.  If a 
 participant does not fulfill the required three-year minimum 
 commitment of service in a designated rural area, the 
 commissioner shall collect from the participant the amount paid 
 under the loan forgiveness program.  The commissioner shall 
 deposit the money collected in the rural physician education 
 account established in subdivision 1.  The commissioner shall 
 allow waivers of all or part of the money owed the commissioner 
 if emergency circumstances prevented fulfillment of the 
 three-year service commitment.  

    Subd. 5.    Loan forgiveness; underserved urban 
 communities.  For each fiscal year beginning on and after 
 1995, the commissioner may accept up to four applicants who are 
 residents in family practice, pediatrics, or internal medicine 
 per fiscal year for participation in the urban primary care 
 physician loan forgiveness program.  The resident applicants may 
 be in any year of residency training; however, priority will be 
 given to the following categories of residents in descending 
 order:  third year residents, second year residents, and first 
 year residents.  If the commissioner does not receive enough 
 qualified applicants per fiscal year to fill the number of slots 
 for urban underserved communities, the slots may be allocated to 
 residents who have applied for the rural physician loan 
 forgiveness program in subdivision 1.  Applicants are 
 responsible for securing their own loans.  For purposes of this 
 provision, "qualifying educational loans" are government and 
 commercial loans for actual costs paid for tuition, reasonable 
 education expenses, and reasonable living expenses related to 
 the graduate or undergraduate education of a health care 
 professional.  Applicants chosen to participate in the loan 
 forgiveness program may designate for each year of medical 
 school, up to a maximum of four years, an agreed amount, not to 
 exceed $10,000, as a qualified loan.  For each year that a 
 participant serves as a physician in a designated underserved 
 urban area, up to a maximum of four years, the commissioner 
 shall annually pay an amount equal to one year of qualified 
 loans.  Participants who move their practice from one designated 
 underserved urban community to another remain eligible for loan 
 repayment. 

    HIST: 1990 c 591 art 4 s 5,9; 1991 c 356 art 8 s 20; 1992 c 
 549 art 6 s 1,2; 1993 c 345 art 11 s 2-5; 1995 c 212 art 3 s 
 57,59; 1995 c 234 art 8 s 23,24,48; 1997 c 183 art 2 s 7,20; 
 1997 c 225 art 2 s 47