SEC. 2211. FRONTLINE HEALTH PROVIDERS.

Part D of title III [42 U.S.C. 254b et seq.] is amended by adding at the end the following:

'Subpart XI--Health Professional Needs Areas

'SEC. 340H. IN GENERAL.

'[a] Program- The Secretary, acting through the Administrator of the Health Resources and Services Administration, shall establish a program, to be known as the Frontline Health Providers Loan Repayment Program, to address unmet health care needs in health professional needs areas through loan repayments under section 340I.

'[b] Designation of Health Professional Needs Areas-

'[1] IN GENERAL- In this subpart, the term 'health professional needs area' means an area, population, or facility that is designated by the Secretary in accordance with paragraph [2].

'[2] DESIGNATION- To be designated by the Secretary as a health professional needs area under this subpart:

'[A] In the case of an area, the area must be a rational area for the delivery of health services.

'[B] The area, population, or facility must have, in one or more health disciplines, specialties, or subspecialties for the population served, as determined by the Secretary--

'[i] insufficient capacity of health professionals; or

'[ii] high needs for health services.

'[C] With respect to the delivery of primary health services, the area, population, or facility must not include a health professional shortage area [as designated under section 332], except that the area, population, or facility may include such a health professional shortage area to which no member of the National Health Service Corps is currently assigned.

'[c] Eligibility- To be eligible to participate in the Program, an individual shall--

'[1] hold a degree in a course of study or program [approved by the Secretary] from a school defined in section 799B[1][A] [other than a school of public health];

'[2] hold a degree in a course of study or program [approved by the Secretary] from a school or program defined in subparagraph [C], [D], or [E][4] of section 799B[1], as designated by the Secretary;

'[3] be enrolled as a full-time student--

'[A] in a school or program defined in subparagraph [C], [D], or [E][4] of section 799B[1], as designated by the Secretary, or a school described in paragraph [1]; and

'[B] in the final year of a course of study or program, offered by such school or program and approved by the Secretary, leading to a degree in a discipline referred to in subparagraph [A] [other than a graduate degree in public health], [C], [D], or [E][4] of section 799B[1];

'[4] be a practitioner described in section 1842[b][18][C] or 1848[k][3][B][iii] or [iv] of the Social Security Act; or

'[5] be a practitioner in the field of respiratory therapy, medical technology, or radiologic technology.

'[d] Definition- In this subpart, the term 'primary health services' has the meaning given to such term in section 331[a][3][D].

'SEC. 340I. LOAN REPAYMENTS.

'[a] Loan Repayments- The Secretary, acting through the Administrator of the Health Resources and Services Administration, shall enter into contracts with individuals under which--

'[1] the individual agrees--

'[A] to serve as a full-time primary health services provider or as a full-time or part-time provider of other health services for a period of time equal to 2 years or such longer period as the individual may agree to;

'[B] to serve in a health professional needs area in a health discipline, specialty, or a subspecialty for which the area, population, or facility is designated as a health professional needs area under section 340H; and

'[C] in the case of an individual described in subsection 340H[c][3] who is in the final year of study and who has accepted employment as primary health services provider or provider of other health services in accordance with subparagraphs [A] and [B], to complete the education or training and maintain an acceptable level of academic standing [as determined by the educational institution offering the course of study or training]; and

'[2] the Secretary agrees to pay, for each year of such service, an amount on the principal and interest of the undergraduate or graduate educational loans [or both] of the individual that is not more than 50 percent of the average award made under the National Health Service Corps Loan Repayment Program under subpart III in that year.

'[b] Practice Setting- A contract entered into under this section shall allow the individual receiving the loan repayment to satisfy the service requirement described in subsection [a][1] through employment in a solo or group practice, a clinic, an accredited public or private nonprofit hospital, or any other health care entity, as deemed appropriate by the Secretary.

'[c] Application of Certain Provisions- The provisions of subpart III of part D shall, except as inconsistent with this section, apply to the loan repayment program under this subpart in the same manner and to the same extent as such provisions apply to the National Health Service Corps Loan Repayment Program established under section 338B.

'[d] Insufficient Number of Applicants- If there are an insufficient number of applicants for loan repayments under this section to obligate all appropriated funds, the Secretary shall transfer the unobligated funds to the National Health Service Corps for the purpose of--

'[1] recruitment of sufficient applicants for the National Health Service Corps for the following year; or

'[2] making additional loan repayments under section 338B if there is an excess number of qualified applicants for loan repayments under such section.

'SEC. 340J. REPORT.

'The Secretary shall submit to the Congress an annual report on the program carried out under this subpart.

'SEC. 340K. ALLOCATION.

'Of the amount of funds obligated under this subpart each fiscal year for loan repayments--

'[1] 90 percent shall be for physicians and other health professionals providing primary health services; and

'[2] 10 percent shall be for health professionals not described in paragraph [1].'.