Loan Repayment and Loan Forgiveness Program

UPDATE:  

LOAN REPAYMENT – HB 2400 Failed
The House Health Committee approved the request for $3.1 million for the loan repayment program. Testimony from rural physicians and medical school students made a compelling case about the need to offset medical school debt of up to $200,000 to attract primary care providers to rural communities. The Education Subcommittee of Ways and Means also heard the bill, but ultimately it was not funded.
Efforts to gain some funding for the program in the end-of-session "Christmas tree bill" were also unsuccessful.

LOAN FORGIVENESS – HB 2397 Passed
This is one of the few new programs started and funded by the legislature in 2011. The loan forgiveness program, funded with $525,000, will provide loans to students studying to be physicians, nurse practitioners or physician assistants who are committed to work in a rural area. Loans of up to $35,000 per year, administered by the Office of Rural Health, will be awarded to students beginning in their second year of training. Each year of loan will be forgiven for a year spent practicing medicine in a rural Oregon community. Legislators liked the idea of rural communities being able to grow their own by identifying star students who want to become medical professionals.

RURAL MALPRACTICE SUBSIDY – SB 608 Passed
The Rural Malpractice Subsidy was fully funded for 18 months, from January 2012 through June 2013, with $6.1 million. The program provides subsidies to physicians and nurse practitioners in rural areas, particularly those who practice obstetrics.

The state loan repayment program is called the “Rural Health Services” program.It covers primary care physicians, nurse practitioners (NPs), physician assistants (PAs), dentists and pharmacists. There is also a Nursing Services loan repayment program. Both state loan repayment programs are administered by the Oregon Student Assistance Commission (OSAC). OSAC receives assistance from the Oregon Office of Rural Health (ORH). Awards are made to the practitioner (not to the site). Awardees must then find a job in a qualifying practice site. Awardees receive assistance in finding a qualifying job by ORH (Jo Johnson). Maximum award is $100,000. All awardees may also practice in any rural hospital or Rural Health Clinic. Pharmacists may also practice in a federally designated HPSA community. Pharmacy cannot be part of a group of six or more pharmacies under common ownership

Service obligation:

• Physicians, dentists and pharmacists: minimum 3 years and maximum 5 years (20% per year)
• NPs and PAs: minimum 2 years and maximum 4 years (25% per year)

Qualifying sites for physicians, NPs and PAs:

This map, as well as a list of qualifying communities, can be found on the ORH web site: www.ohsu.edu/oregonruralhealth

Your Office of Rural Health is ready to help you successfully recruit and retain your local health care workforce.

Jo Johnson, Recruitment Services Coordinator, This e-mail address is being protected from spambots. You need JavaScript enabled to view it