Enhances enforcement of primary care physician loan and scholarship programs

Summary of specific provisions

Subdivision 4 of section 903 of the public health law as amended by chapter 639 of the laws of 1996, is amended to state that any loan or scholarship money shall become due and shall be paid in full upon a determination that the recipient failed to comply with the conditions of the program. The Commissioner of Health shall initiate proceedings that could lead to the suspension of the recipients license to practice medicine in the State of New York and shall file a report with the New York State Department of Taxation and Finance indicating the total amount of a recipient's unearned loan repayment award so that such award may be considered income for the purpose of article twenty-two of the tax law.

Section 903 of the public health law is amended by adding a new subdivision 4-a that states: The recipient of a loan repayment award shall report annually to the NYS Higher Education Services Corporation as to the performance of the required services, beginning with the calendar year in which the recipient begins to provide primary care services in an under served area and continuing until the recipient completes, or until it is determined that he or she is not obligated to complete, the required service. If the recipient fails to file any required report within 30 days of written notice, the president of HESC may impose a fine of up to $5,000. The president shall have the discretion to waive the filing of a report, excuse a delay in filing or failure to report, or waive or reduce any fine imposed for good cause.

Every two years when the recipient of an award registers with the NYS Education Department's Division of Professional Licensing, as required by law, he or she shall file a report as to the performance of the required services.

Subdivisions 6 and 7 of section 904 of the public health law, as amended by chapter 255 of the laws of 1994, are amended to address if the recipient fails to comply fully with such conditions, a formula is provided for determining the repayment of all or part of the loan/scholarship which is due and shall be paid in full upon a determination that the recipient failed to comply with the service condition.

The Commissioner of Public Health shall promulgate regulations necessary to effectuate the provisions and purposes of this section.

Justification

This legislation was drafted as a result of a large number of "deadbeat doctors" who graduated from the Sophie B. Davis School of Biomedical Education of the City University of New York. It has been estimated that as many as one third of the participants have failed to fulfill their public service commitments. As a stipulation of the loan/scholarship they are required to serve for two years as a primary care physician in an under served urban neighborhood. Each participant signs an agreement in which he or she acknowledges an obligation to repay the cost of medical education that has been subsidized by the taxpayers. If the student has failed to meet the public service requirements, the city and state are to be reimbursed for the actual cost of the education. It also states in the agreement that the student understands that failure to serve or repay the obligation shall be "considered by the New York State Board of Regents as unprofessional conduct in the practice of medicine."

These doctors have taken the benefits of a state subsidized medical education and ignored their obligations. At a time when the state's resources are stretched to the breaking point the violators of this program should be forced to make financial restitution. The individual tuition subsidies range from a minimum of $25,000 to as much as $75,000 and the state could recoup up to $10 million from these doctors.

Many of the physicians are believed to have opened offices in affluent communities or are practicing as specialists for substantially higher fees than are available in primary care treatment. Individuals who were helped to become doctors through an enlightened taxpayer-supported program have shown hypocritical indifference to their legal and ethical obligations.

Prior legislative history

Previously introduced.

Fiscal implications

None.

Effective date

This act shall take effect on the one hundred twentieth day after it shall have become a law, except that any rule or regulation necessary for the timely implementation of this act shall be promulgated on or before such date.