32.1-122.6 - Conditional grants for certain medical students.
§ 32.1-122.6. Conditional grants for certain medical students.
A. With such funds as are appropriated for this purpose, the Board of Healthshall establish annual medical scholarships for students who intend to enterthe designated specialties of family practice medicine, general internalmedicine, pediatrics, and obstetrics/gynecology for students in good standingat the Medical College of Virginia of Virginia Commonwealth University, theUniversity of Virginia School of Medicine, and the Eastern Virginia MedicalSchool. No recipient shall be awarded more than five scholarships. The amountand number of such scholarships and the apportionment of the scholarshipsamong the medical schools shall be determined annually as provided in theappropriation act; however, the Board shall reallocate annually any remainingfunds from awards made pursuant to this section and § 32.1-122.5:1 among theschools participating in these scholarship programs, proportionally to theirneed, for additional medical scholarships for eligible students. TheCommissioner shall act as fiscal agent for the Board in administration of thescholarship funds.
The governing boards of Virginia Commonwealth University, the University ofVirginia, and the Eastern Virginia Medical School shall submit to theCommissioner the names of those eligible applicants who are most qualified asdetermined by the regulations of the Board for these medical scholarships.The Commissioner shall award the scholarships to the applicants whose namesare submitted by the governing boards.
B. The Board, after consultation with the Medical College of Virginia ofVirginia Commonwealth University, the University of Virginia School ofMedicine, and the Eastern Virginia Medical School, shall promulgateregulations to administer this scholarship program which shall include, butnot be limited to:
1. Qualifications of applicants;
2. Criteria for award of the scholarships to assure that recipients willfulfill the practice obligations established in this section;
3. Standards to assure that these scholarships increase access to primaryhealth care for individuals who are indigent or who are recipients of publicassistance;
4. Assurances that bona fide residents of Virginia, as determined by §23-7.4, students of economically disadvantaged backgrounds and residents ofmedically underserved areas are given preference over nonresidents indetermining scholarship eligibility and awards;
5. Assurances that scholarship recipients will begin medical practice in oneof the designated specialties in an underserved area of the Commonwealthwithin two years following completion of their residencies;
6. Methods for reimbursement of the Commonwealth by recipients who fail tocomplete medical school or who fail to honor the obligation to engage inmedical practice for a period of years equal to the number of annualscholarships received;
7. Procedures for reimbursing any recipient who has repaid the Commonwealthfor part or all of any scholarship and who later fulfills the terms of hiscontract;
8. Procedures for transferring unused funds upon the recommendation of theCommissioner and the approval of the Department of Planning and Budget in theevent any of the medical schools has not recommended the award of its fullcomplement of scholarships by January of each year and one or both of theother medical schools has a demonstrated need for additional scholarships forthat year; and
9. Reporting of data related to the recipients of the scholarships by themedical schools.
C. Prior to the award of any scholarship, the applicant shall sign a contractin which he agrees to pursue the medical course of the school nominating himfor the award until his graduation or to pursue his first year ofpostgraduate training at the hospital or institution approved by the schoolnominating him for the award and upon completing a term not to exceed threeyears, or four years for the obstetric/gynecology specialty, as an intern orresident at an approved institution or facility intends to promptly begin andthereafter engage continuously in one of the designated specialties ofmedical practice in an underserved area in Virginia for a period of yearsequal to the number of annual scholarships received. The contract shallspecify that no form of medical practice such as military service or publichealth service may be substituted for the obligation to practice in one ofthe designated specialties in an underserved area in the Commonwealth.
The contract shall provide that the applicant will not voluntarily obligatehimself for more than the minimum period of military service required forphysicians by the laws of the United States and that, upon completion of thisminimum period of obligatory military service, the applicant will promptlybegin to practice in an underserved area in one of the designated specialtiesfor the requisite number of years. The contract shall include otherprovisions as considered necessary by the Attorney General and theCommissioner.
The contract may be terminated by the recipient while the recipient isenrolled in medical school upon providing notice and immediate repayment ofthe total amount of scholarship funds received plus interest at theprevailing bank rate for similar amounts of unsecured debt.
D. In the event the recipient fails to maintain a satisfactory scholasticstanding, the recipient may, upon certification of the Commissioner, berelieved of the obligations under the contract to engage in medical practicein an underserved area upon repayment to the Commonwealth of the total amountof scholarship funds received plus interest at the prevailing bank rate forsimilar amounts of unsecured debt.
E. In the event the recipient dies or becomes permanently disabled so as notto be able to engage in the practice of medicine, the recipient or his estatemay, upon certification of the Commissioner, be relieved of the obligationunder the contract to engage in medical practice in an underserved area uponrepayment to the Commonwealth of the total amount of scholarship funds plusinterest on such amount computed at eight percent per annum from the date ofreceipt of scholarship funds. This obligation may be waived in whole or inpart by the Commissioner in his discretion upon application by the recipientor his estate to the Commissioner with proof of hardship or inability to pay.
F. Except as provided in subsections D and E, any recipient of a scholarshipwho fails or refuses to fulfill his obligation to practice medicine in one ofthe designated specialties in an underserved area for a period of years equalto the number of annual scholarships received shall reimburse theCommonwealth three times the total amount of the scholarship funds receivedplus interest at the prevailing bank rate for similar amounts of unsecureddebt. If the recipient has fulfilled part of his contractual obligations byserving in an underserved area in one of the designated specialties, thetotal amount of the scholarship funds received shall be reduced by the amountof the annual scholarship multiplied by the number of years served.
G. The Commissioner shall collect all repayments required by this section andmay establish a schedule of payments for reimbursement consistent with theregulations of the Board. No schedule of payments shall amortize the totalamount due for a period of longer than two years following the completion ofthe recipient's postgraduate training or the recipient's entrance into thefull-time practice of medicine, whichever is later. All such funds, includingany interest thereon, shall be used only for the purposes of this section andshall not revert to the general fund. If any recipient fails to make anypayment when and as due, the Commissioner shall notify the Attorney General.The Attorney General shall take such action as he deems proper. In the eventcourt action is required to collect a delinquent scholarship account, therecipient shall be responsible for the court costs and reasonable attorneys'fees incurred by the Commonwealth in such collection.
H. For purposes of this section, the term "underserved area" shall includethose medically underserved areas designated by the Board pursuant to §32.1-122.5 and health professional shortage areas designated in accordancewith the criteria established in 42 C.F.R. Part 5.
(1990, cc. 874, 877; 1991, c. 134; 1994, cc. 281, 867; 2000, c. 926; 2001, c.188; 2002, cc. 87, 478.)