SEC. 2214. TRAINING OF MEDICAL RESIDENTS IN COMMUNITY-BASED SETTINGS.

Title VII [42 U.S.C. 292 et seq.] is amended--

[1] by redesignating section 748 as 749A; and

[2] by inserting after section 747 the following:

'SEC. 748. TRAINING OF MEDICAL RESIDENTS IN COMMUNITY-BASED SETTINGS.

'[a] Program- The Secretary shall establish a program for the training of medical residents in community-based settings consisting of awarding grants or contracts under this section.

'[b] Development and Operation of Community-Based Programs- The Secretary shall make grants to, or enter into contracts with, eligible entities--

'[1] to plan and develop a new primary care residency training program, which may include--

'[A] planning and developing curricula;

'[B] recruiting and training residents and faculty; and

'[C] other activities designated to result in accreditation of such a program; or

'[2] to operate or participate in an established primary care residency training program, which may include--

'[A] planning and developing curricula;

'[B] recruitment and training of residents; and

'[C] retention of faculty.

'[c] Eligible Entity- To be eligible to receive a grant or contract under subsection [b], an entity shall--

'[1] be designated as a recipient of payment for the direct costs of medical education under section 1886[k] of the Social Security Act;

'[2] be designated as an approved teaching health center under section 1502[d] of the America's Affordable Health Choices Act of 2009 and continuing to participate in the demonstration project under such section; or

'[3] be an applicant for designation described in paragraph [1] or [2] and have demonstrated to the Secretary appropriate involvement of an accredited teaching hospital to carry out the inpatient responsibilities associated with a primary care residency training program.

'[d] Preferences- In awarding grants and contracts under paragraph [1] or [2] of subsection [b], the Secretary shall give preference to entities that--

'[1] support teaching programs that address the health care needs of vulnerable populations; or

'[2] are a Federally qualified health center [as defined in section 1861[aa][4] of the Social Security Act] or a rural health clinic [as defined in section 1861[aa][2] of such Act].

'[e] Additional Preferences for Established Programs- In awarding grants and contracts under subsection [b][2], the Secretary shall give preference to entities that have a demonstrated record of training--

'[1] a high or significantly improved percentage of health care professionals who provide primary care;

'[2] individuals who are from underrepresented minority groups or disadvantaged backgrounds; or

'[3] individuals who practice in settings having the principal focus of serving underserved areas or populations experiencing health disparities [including serving patients eligible for medical assistance under title XIX of the Social Security Act or for child health assistance under title XXI of such Act or those with special health care needs].

'[f] Period of Awards-

'[1] IN GENERAL- The period of a grant or contract under this section--

'[A] shall not exceed 2 years for awards under subsection [b][1]; and

'[B] shall not exceed 5 years for awards under subsection [b][2].

'[2] SPECIAL RULES-

'[A] An award of a grant or contract under subsection [b][1] shall not be renewed.

'[B] The period of a grant or contract awarded to an entity under subsection [b][2] shall not overlap with the period of any grant or contact awarded to the same entity under subsection [b][1].

'[g] Report- The Secretary shall submit to the Congress an annual report on the program carried out under this section.

'[h] Definitions- In this section:

'[1] PRIMARY CARE RESIDENCY TRAINING PROGRAM- The term 'primary care residency training program' means an approved medical residency training program described in section 1886[h][5][A] of the Social Security Act that is--

'[A] in the case of entities seeking awards under subsection [b][1], actively applying to be accredited by the Accreditation Council for Graduate Medical Education; or

'[B] in the case of entities seeking awards under subsection [b][2], so accredited.

'[2] HEALTH DISPARITIES- The term 'health disparities' has the meaning given the term in section 3171.'.