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Administrative Code

Virginia Administrative Code
10/15/2024

Part III. Contract

12VAC5-508-220. Loan repayment contract.

Prior to becoming a participant in the Virginia Physician Loan Repayment Program, the applicant shall enter into a contract with the commissioner agreeing to the terms and conditions upon which the loan repayment is granted. The contract shall:

1. Include the terms and conditions to carry out the purposes and intent of this program;

2. Provide that the participant shall be required to (i) provide primary health care services at an approved site in an HPSA, a VMUA, or a state or local institution for a minimum period of two years or (ii) be employed in an approved geriatrics fellowship for a minimum of two years. All loan repayment program participation shall be contingent upon continuous, full-time practice in an HPSA, a VMUA, an approved geriatrics fellowship, or a state or local institution;

3. Provide for repayment of all amounts paid, plus interest and penalties, less any service time in the event of breach of the contract;

4. Be signed by the applicant; and

5. Be signed by the commissioner or his designee.

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.

12VAC5-508-230. Breach of contract.

A. The following may constitute breach of contract:

1. Participant's failure to begin or complete his term of obligated service under the terms and conditions of the Virginia Physician Loan Repayment Program contract, regardless of the length of the agreed period of obligated service;

2. Participant's falsification or misrepresentation of information on the program application or verification forms or other required documents; or

3. Termination of participant's employment for good cause, as determined by the employer and confirmed by the department. If employment is terminated for reasons beyond the participant's control (e.g., closure of site), the participant shall transfer to another approved site in an HPSA, a VMUA, an approved geriatrics fellowship, or a state or local institution within six months of termination. Failure of the participant to find a transfer site within this time limit shall be deemed to be a breach of the contract.

B. In the event of a breach of contract, the participant shall make default payments as described in 12VAC5-508-260 and in accordance with the terms of the contract. In the event of a breach of contract where the participant has partially fulfilled his obligation, the total amount of reimbursement shall be prorated by the proportion of obligation completed.

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.

12VAC5-508-240. (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.

12VAC5-508-250. Deferment or waiver of service.

A. Participants have the obligation to complete full-time continuous service for the period of their commitment. Under unusual circumstances as described in subsection B of this section, a participant may request that the board agree to a deferment of the service obligation. This deferment, if granted, shall not relieve the participant of the responsibility to complete the remaining portion of the obligation. Such deferment shall not be permitted as a matter of course, but may be allowed in the most compelling cases.

B. Individual cases may be considered by the board for a variance of payment or service, pursuant to § 32.1-12 of the Code of Virginia, if it finds compliance with the applicable service requirements or default repayment would pose an undue hardship on the participant.

C. If the participant is in default due to death or disability so as not to be able to engage in medical practice in an HPSA, a VMUA, an approved geriatrics fellowship, or a state or local institution in the Commonwealth, the participant or his personal representative may be relieved of his obligation under the contract to engage in medical practice, upon repayment to the Commonwealth of the total amount of loan repayment received plus interest and penalty as stated in the contract. For participants completing part of the required service obligation prior to becoming permanently disabled or in the event of death, the total amount of loan repayment funds owed shall be reduced by the proportion of obligated years served. The obligation to make restitution may be waived by the board upon application of the participant or the participant's representative to the board.

D. All requests for deferments, waivers, or variances must be submitted in writing to the department for consideration and final disposition by the board.

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.

12VAC5-508-260. Cash reimbursement and penalty.

Participants who serve less than their obligated service shall be liable for repayment, including interest and penalty, to the Commonwealth as stated in the contract, reduced by the proportion of obligated years served.

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.

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