3701-6-03 Requirements for contract.

(A) A primary care physician who has signed a letter of intent under paragraph (E) of rule 3701-6-02 of the Administrative Code, the director, and the Ohio board of regents may enter into a contract providing for the physician’s participation in the physician loan repayment program. A lending institution, the physician’s employer or another funder may also be a party to the contract.

(B) The contract shall include all of the following obligations:

(1) Agreement by the primary care physician to provide primary care services in the health resource shortage area identified in his or her letter of intent for a period of time which is the greater of:

(a) Two years; or

(b) One year for each twenty thousand dollar increment or portion thereof of repayment agreed to under paragraph (B)(3) of this rule.

(2) Agreement by the primary care physician that, in providing primary care services in the health resource shortage area, he or she will do all of the following:

(a) Provide primary care services for a minimum of forty hours per week;

(b) Provide primary care services without regard to a patient’s ability to pay;

(c) Meet the conditions prescribed by the “Social Security Act,” 49 Stat. 620 (1935), 42 U.S.C.A. 301 as amended (1981), and the Ohio department of job and family services for participation in the medical assistance program established under Chapter 5111. of the Revised Code and enter into a contract with the Ohio department of job and family services to provide primary care services to recipients of the medical assistance program.

(d) Accept into his or her practice a percentage of individuals determined eligible for the medical assistance program described in paragraph (B)(2)(c) of this rule at least equal to the percentage of the general population in that health resource shortage area which has been determined eligible for the medical assistance program.

(3) Agreement by the Ohio board of regents, as provided in section 3702.75 of the Revised Code, to repay, so long as the primary care physician performs the service obligation to which he or she has agreed under paragraph (B)(1) of this rule, all or part of the primary care physician’s educational expenses, as defined in paragraph (C) of rule 3701-6-01 of the Administrative Code.

(4) Agreement by the primary care physician to pay the Ohio board of regents the following as damages if he or she fails to complete the service obligation to which he or she has agreed under paragraph (B)(1) of this rule:

(a) If the failure occurs during the first two years of the service obligation, three times the amount the Ohio board of regents has agreed to repay under paragraph (B)(3) of this rule;

(b) If the failure occurs after the first two years of the service obligation, three times the amount the Ohio board of regents is still obligated to repay under paragraph (B)(3) of this rule.

(c) If funds from another source are used to repay a portion of the physician’s loan, damages owed if the physician fails to complete the obligation will be the damages specified by the other source of the funds, or as outlined in paragraph (B)(4) of this rule, whichever is greater.

(5) If the Ohio board of regents assumes the physician’s duty to repay a portion of the loan, the contract shall set forth the amount of each payment.

(C) In addition to the terms required under paragraph (B) of this rule, the contract may contain other terms agreed upon by the parties, including reimbursement for increased tax liability if a repayment results in an increase in the primary care physician’s federal, state, or local income liability.

Effective: 08/02/2007

R.C. 119.032 review dates: 05/16/2007 and 08/01/2012

Promulgated Under: 119.03

Statutory Authority: 3701.79

Rule Amplifies: 3701.74

Prior Effective Dates: 10/15/94, 1/20/00, 12/28/01