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Virginia Administrative Code
10/14/2024

Part II. Administration of the Virginia Physician Loan Repayment Program

12VAC5-508-40. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-50. Eligible applicants.

Eligible applicants for the Virginia Physician Loan Repayment Program shall:

1. Be a United States citizen, national, or a qualified alien pursuant to 8 USC § 1621;

2. Have graduated from an accredited medical school;

3. Be an allopathic (M.D.) or osteopathic (D.O.) physician who is enrolled in the final year of an approved residency program in allopathic medicine or osteopathic medicine, or already in practice, and who will have completed post-graduate training in an approved residency or be employed or accepted in a geriatrics fellowship when the period of obligated service begins;

4. Have a valid unrestricted Virginia license to practice medicine, a copy of which shall be furnished to the Virginia Physician Loan Repayment Program;

5. Have submitted a completed application to participate in the Virginia Physician Loan Repayment Program;

6. Have no other contractual service obligation unless completely satisfied before the physician loan repayment program contract has been signed;

7. Not have an active military obligation;

8. Be employed or have a contract for employment in an HPSA, a VMUA, an approved geriatrics fellowship, or a state or local institution within a month of the completion of the approved residency program or within a month of the application date, whichever is later;

9. Not have a history of failing to comply with, or inability to comply with, service or payment obligations;

10. Not have a history of noncompliance within any other state or federal scholarship or loan repayment program; and

11. Have an educational loan balance that can be verified.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-60. Application requirement.

The applicant shall submit a completed application for loan repayment, including documentation of eligibility requirements, to the Virginia Physician Loan Repayment Program, and the application shall be received in the department by July 31. The application form shall be available on the department's website.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-70. Selection criteria.

Applicants shall be competitively reviewed and selected for participation in the Virginia Physician Loan Repayment Program based upon the following criteria:

1. Commitment to serve. The individual's stated commitment to serve in an HPSA, a VMUA, an approved geriatrics fellowship, or a state or local institution.

2. Virginia residents or Virginia graduates. Preferential consideration shall be given to individuals who are or have been Virginia residents or graduates of Virginia medical schools (verification shall be obtained by the Virginia Physician Loan Repayment Program).

3. Residents of HPSAs or VMUAs. Preferential consideration shall be given to individuals who reside in HPSAs or VMUAs (verification shall be obtained by the Virginia Physician Loan Repayment Program).

4. Availability for service. Individuals who are immediately eligible and available for service shall be given higher consideration.

5. Length of proposed commitment. Preferential consideration shall be given to individuals who commit to longer periods of service.

6. Selection for participation. All of an individual's professional qualifications and competency to practice in an underserved area shall be considered, including board eligibility or specialty certification, professional achievements, and other indicators of competency received from supervisors, program directors, or other individuals who have agreed to enter into an employment contract with the individual.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-75. Loans qualifying for repayment.

A. Based on the availability of funds, the loan repayment program shall pay for the cost of education necessary to obtain a medical degree. The program shall pay toward the outstanding principal, interest, and related expense of verifiable federal, state, or local government loans and commercial loans obtained by the participant for:

1. Tuition expenses; and

2. Other reasonable educational expenses.

B. All loan repayment awards shall be applied only to outstanding educational loans secured while attending an accredited medical school. Qualifying outstanding educational loans shall:

1. Have sufficient documentation verifying the educational use of the loans;

2. Not exceed the "reasonable" levels as determined by the school's standard budget in the year the loan was made; and

3. Not include loans from friends and relatives.

C. The department shall be the final authority in determining qualifying educational loans.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-80. Loan repayment terms.

A. Repayment of loans shall begin after the commissioner has received notification that the participant has officially accepted placement and has begun the required service obligation.

B. The applicant shall agree to serve a minimum of two years for a loan repayment amount of up to $60,000 with an option for a renewal in the third and fourth years. Renewals shall only be granted if the applicant can show a reduction in his educational loan balances. The loan repayment amount shall depend upon availability of funds and the applicant's indebtedness. In no event shall the amount of the loan repayment exceed the total indebtedness.

C. Payment shall be a lump-sum payment. Payment shall be made to the participant. A participant shall be paid one lump sum payment of up to $60,000 the first year for the minimum two-year commitment. If a participant commits to a service obligation greater than two years, he shall be paid a lump sum payment of up to $40,000 each following year depending on the availability of funds.

D. The maximum number of years of participation in the loan repayment program to which a participant may commit is four years. Verification of payment made to the lender shall be required and submitted to the department. It shall be the responsibility of the participant to negotiate with each lending institution the terms of the educational loan repayments.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-90. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-100. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-110. Release of information.

A. Applicants shall agree to execute a release of information to allow the department access to loan records, credit information, and information from lenders necessary to verify eligibility and to determine loan repayments. To facilitate the process, applicants shall submit payment statements from each lending institution.

B. Participants who have consolidated qualifying loans with other loans shall submit upon request other documentation, such as copies of original loan applications, to verify the portion of the loan that qualifies for repayment.

C. The applicant shall submit all requested loan documentation prior to approval by the department.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-120. Practice site.

All sites eligible for a participant's loan repayment service obligation shall be located in an HPSA, a VMUA, an approved geriatrics fellowship, or a state or local institution. The department shall publish a list of preapproved areas on the department's website.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-130. Effective date for start of service.

Applicants shall become participants in the loan repayment program only when the applicant and the commissioner or his designee have signed the loan repayment program contract. The effective start date of the obligated service under the contract is the date of employment or the date of the commissioner's signature on the contract, whichever is later.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-135. Terms of service.

The following are the terms of service for the loan repayment program:

1. The participant shall contract to provide a minimum of two years of the required service with a maximum of four years in whole year increments. Additional service beyond the two-year commitment is dependent upon the availability of state funds for the Virginia Physician Loan Repayment Program. An existing contract may be renewed for one year at a time up to a maximum of four years, as funds become available.

2. The participant shall provide full-time service.

3. No period of internship, residency, or other advanced clinical training, except an approved geriatrics fellowship, may count toward satisfying a period of obligated service under this loan repayment program.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-140. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-150. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-160. Compensation during service.

Each participant shall be responsible for negotiating his own compensation package directly with the site where he will provide primary health care services.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-165. Conditions of practice.

A. The participant shall agree to provide health services without discrimination, regardless of a patient's ability to pay. Payments from Medicare and Medicaid shall be accepted by the designated practice site.

B. The participant shall agree to comply with all policies, rules, and regulations of the designated practice site.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-170. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-175. Change of practice site.

Should any participant find that he is unable to fulfill the required service commitment at the practice site to which he has committed to practice, he may request approval of a change of practice site. Such requests shall be made in writing. The commissioner in his discretion may approve such a request. All practice sites, including changes of practice sites, shall be selected with the approval of the commissioner.

In the event of a dispute between the participant and the practice site, every effort shall be made to resolve the dispute before reassignment will be permitted.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-180. Monitoring during service.

Monitoring of the participant's service obligation shall be conducted on an ongoing basis by department staff. Service verification forms shall be submitted by the participant to the department semi-annually (every six months) and countersigned by a representative of the service site (e.g., the medical director, human resource coordinator, or chief executive officer), certifying continuous full-time service by the participant.

The participant shall maintain practice records in a manner that will allow the department to readily determine if the individual has complied with or is complying with the terms and conditions of the contract. Department staff reserves the right to conduct a regular survey to ensure that all participants are maintaining practices that accept Medicare and Medicaid assignment and do not discriminate based on the patient's ability to pay.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; amended, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-190. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-200. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

12VAC5-508-210. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 26, Issue 11, eff. March 3, 2010; repealed, Virginia Register Volume 32, Issue 20, eff. July 15, 2016.

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