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                                                      PRINTER'S NO. 2263

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1655 Session of 1990


        INTRODUCED BY PETERSON, CORMAN, BRIGHTBILL, MADIGAN, LOEPER,
           PUNT, RHOADES, WILT, O'PAKE, HELFRICK, DAWIDA, STAPLETON,
           WENGER, JUBELIRER, ROCKS, BAKER, LEMMOND, HOPPER AND
           PORTERFIELD, JUNE 7, 1990

        REFERRED TO PUBLIC HEALTH AND WELFARE, JUNE 7, 1990

                                     AN ACT

     1  Relating to rural health care; establishing the Bureau of Rural
     2     Health Care Services within the Department of Health and
     3     providing for its powers and duties; establishing the Rural
     4     Health Care Services Advisory Committee and providing for its
     5     powers and duties; and making appropriations.

     6     The General Assembly finds that there exists a shortage of
     7  health manpower, an unavailability of hospital care and barriers
     8  to the access of health services that are unique to certain
     9  rural areas of this Commonwealth. The General Assembly further
    10  finds that the development of a systematic and uniform approach
    11  to identifying the shortage areas and providing programs to
    12  ensure the viability of hospitals and to increase access to
    13  rural health care in those designated shortage areas is in the
    14  best interests of all the citizens of this Commonwealth.
    15                         TABLE OF CONTENTS
    16  Chapter 1.  Preliminary Provisions
    17  Section 101.  Short title.
    18  Section 102.  Definitions.


     1  Chapter 3.  Bureau and Advisory Committee
     2  Section 301.  Bureau of Rural Health Care Services.
     3  Section 302.  Rural Health Care Services Advisory Committee.
     4  Chapter 5.  Medical Practice Loans
     5  Section 501.  Physician Practice Start-up and Expansion Loan
     6                 Repayment Program.
     7  Section 502.  Allocation of repayment amounts.
     8  Section 503.  Eligibility.
     9  Section 504.  Conditions for certain assistance.
    10  Section 505.  Terms and conditions of agreements.
    11  Section 506.  Assignment criteria.
    12  Section 507.  Other sources of funding.
    13  Chapter 7.  Residency Practice Program
    14  Section 701.  Residency practice incentives program in rural
    15                 clinics.
    16  Section 702.  Guidelines.
    17  Section 703.  Funding.
    18  Section 704.  Report to General Assembly.
    19  Chapter 9.  Family Practice
    20  Section 901.  Family Practice Incentive Grant Demonstration
    21                 Program.
    22  Section 902.  Grants.
    23  Section 903.  Report to General Assembly.
    24  Section 904.  Expiration of chapter.
    25  Chapter 11.  Health Care Grants
    26  Section 1101.  Health Care Transitional Grant Program.
    27  Section 1102.  Funding.
    28  Chapter 13.  School Health Programs
    29  Section 1301.  School Health Care Clinic Pilot Program.
    30  Section 1302.  Purpose.
    19900S1655B2263                  - 2 -

     1  Section 1303.  Pilot projects.
     2  Section 1304.  Conditions of projects.
     3  Section 1305.  Removal of impediments.
     4  Section 1306.  Further duties of bureau.
     5  Section 1307.  Funding.
     6  Chapter 15.  Rural Health Network
     7  Section 1501.  Rural Health and Human Services Network
     8                 Pilot Program.
     9  Section 1502.  Eligibility.
    10  Section 1503.  Technical advice.
    11  Section 1504.  Grant amounts.
    12  Section 1505.  Reports.
    13  Section 1506.  Further duties of bureau.
    14  Chapter 17.  Mobile Health Clinics
    15  Section 1701.  Mobile Health Clinic Demonstration Program.
    16  Section 1702.  Required clinics.
    17  Section 1703.  Conditions of grants.
    18  Section 1704.  Expiration of chapter.
    19  Chapter 21.  Miscellaneous Provisions
    20  Section 2101.  Appropriations.
    21  Section 2102.  Effective date.
    22     The General Assembly of the Commonwealth of Pennsylvania
    23  hereby enacts as follows:
    24                             CHAPTER 1
    25                       PRELIMINARY PROVISIONS
    26  Section 101.  Short title.
    27     This act shall be known and may be cited as the Rural Health
    28  Care Act.
    29  Section 102.  Definitions.
    30     The following words and phrases when used in this act shall
    19900S1655B2263                  - 3 -

     1  have the meanings given to them in this section unless the
     2  context clearly indicates otherwise:
     3     "Advisory committee" or "committee."  The Rural Health Care
     4  Services Advisory Committee.
     5     "Bureau."  The Bureau of Rural Health Care Services in the
     6  Department of Health.
     7     "Community-based practice."  The noninstitutional private
     8  practice of a physician.
     9     "Community health center."  An entity which through its staff
    10  and supporting resources or through contracts or cooperative
    11  arrangements with other public or private entities provides
    12  health services or information thereon to residents of a
    13  particular area of this Commonwealth.
    14     "Department."  The Department of Health of the Commonwealth.
    15     "Designated shortage area."  An area:
    16         (1)  designated by the Secretary of Health as a physician
    17     shortage area using criteria which take into account the
    18     special barriers to the provision of health care services in
    19     a rural area;
    20         (2)  a medically underserved area as designated by the
    21     United States Department of Health and Human Services; or
    22         (3)  a critical manpower shortage area as defined by the
    23     United States Department of Health and Human Services, or as
    24     further defined by the Bureau of Rural Health Care Services
    25     in consultation with the Rural Health Care Services Advisory
    26     Committee.
    27     "Family Practice" or "General Practice."  A medical specialty
    28  as defined by the American Board of Medical Specialties or the
    29  American Osteopathic Board of General Practice.
    30     "Health care facility."  A general or special hospital,
    19900S1655B2263                  - 4 -

     1  including tuberculosis and psychiatric hospitals, rehabilitation
     2  facilities, skilled nursing facilities, kidney disease treatment
     3  centers, including freestanding hemodialysis units, intermediate
     4  care facilities and ambulatory surgical facilities, both profit
     5  and nonprofit and, including those operated by an agency of
     6  State or local government, but shall not include an office used
     7  exclusively for their private or group practice by physicians or
     8  dentists, nor a program which renders treatment or care for drug
     9  or alcohol dependence, unless located within, by or through a
    10  health care facility, a facility providing treatment solely on
    11  the basis of prayer or spiritual means in accordance with the
    12  tents of any church or religious denomination, nor a facility
    13  conducted by a religious organization for the purpose of
    14  providing health care services exclusively to clergymen or other
    15  persons in a religious profession who are members of the
    16  religious denominations conducting the facility.
    17     "Health and Human Services Network Program."  The
    18  coordination of rural health services provided by health care
    19  providers as established under this act.
    20     "Internal Medicine."  A medical specialty as defined by the
    21  American Board of Medical Specialties or the American
    22  Osteopathic Board of Internal Medicine.
    23     "Pediatrics."  A medical specialty as defined by the American
    24  Board of Medical Specialties and the American Osteopathic Board
    25  of Pediatrics.
    26     "Primary Care Services."  Medical services provided by family
    27  or general practitioners, general internists, general
    28  pediatricians or obstetrician-gynecologists.
    29     "Secretary."  The Secretary of Health of the Commonwealth.
    30                             CHAPTER 3
    19900S1655B2263                  - 5 -

     1                   BUREAU AND ADVISORY COMMITTEE
     2  Section 301.  Bureau of Rural Health Care Services.
     3     (a)  Establishment.--There is hereby established within the
     4  Department of Health the Bureau of Rural Health Care Services.
     5     (b)  Powers and duties.--Upon the advice and recommendations
     6  of the advisory committee, the bureau shall:
     7         (1)  Coordinate the health services provided by the
     8     department to rural residents.
     9         (2)  Coordinate the services provided for rural residents
    10     by various local, county and regional agencies or groups.
    11         (3)  Administer the programs established under this act
    12     to increase the numbers of physicians practicing in rural
    13     designated shortage areas.
    14         (4)  Administer the programs established under this act
    15     to increase the viability and enhance the quality of health
    16     services provided by rural hospitals.
    17         (5)  Administer the programs established under this act
    18     to increase access to health care for rural residents.
    19         (6)  Annually review and update the designation of
    20     physician, medically underserved and critical manpower
    21     shortage areas and report to the General Assembly the then
    22     current status of the need for health care services and
    23     providers in the areas so designated.
    24         (7)  Consult with and receive recommendations from the
    25     advisory committee in determining and fulfilling rural health
    26     care needs.
    27         (8)  Administer sums appropriated to carry out this act
    28     to increase the numbers of rural physicians, to increase the
    29     viability and enhance the quality of health services provided
    30     by rural hospitals, and to increase access to health care for
    19900S1655B2263                  - 6 -

     1     rural residents.
     2  Section 302.  Rural Health Care Services Advisory Committee.
     3     (a)  Establishment and purpose.--There is hereby established
     4  the Rural Health Care Services Advisory Committee which shall
     5  provide advice and recommendations to the bureau on the programs
     6  created under this act and on all other health care matters
     7  impacting on rural areas.
     8     (b)  Composition.--The committee shall include the following:
     9         (1)  One member appointed by the President pro tempore of
    10     the Senate; one by the Minority Leader of the Senate; one by
    11     the Speaker of the House of Representatives; and one by the
    12     Minority Leader of the House of Representatives.
    13         (2)  Ten members appointed by the Governor as follows:
    14             (i)  Two members who are licensed family or general
    15         practitioners, general internists, general pediatricians
    16         or obstetrician-gynecologists actively engaged in
    17         practice in a rural area.
    18             (ii)  One member who is a director of a rural
    19         community health center.
    20             (iii)  Two rural county commissioners chosen by the
    21         Pennsylvania Association of County Commissioners.
    22             (iv)  Two representatives of rural hospitals.
    23             (v)  One licensed osteopathic physician actively
    24         practicing in a rural designated shortage area.
    25             (vi)  One registered nurse practicing in a rural
    26         designated area.
    27             (vii)  One dentist practicing in a rural designated
    28         area.
    29     (c)  Terms of office.--Legislative members shall serve terms
    30  coterminous with that of their legislative office. All other
    19900S1655B2263                  - 7 -

     1  members shall serve four years or the term of the office by
     2  which he holds membership on the committee, and until his
     3  successor has been appointed and qualified, but not longer than
     4  six months beyond the applicable period.
     5                             CHAPTER 5
     6                       MEDICAL PRACTICE LOANS
     7  Section 501.  Physician Practice Start-up and Expansion Loan
     8                 Repayment Program.
     9     (a)  Fund.--There is hereby established a separate account in
    10  the State Treasury, to be known as the Physician Practice Start-
    11  up and Expansion Loan Repayment Fund. This fund shall be
    12  administered by the bureau. All moneys in the fund are hereby
    13  appropriated to the bureau on a continuing basis to carry out
    14  this chapter.
    15     (b)  Purpose.--The fund shall be used to repay physician
    16  start-up and expansion loans for physicians providing primary
    17  care services full time in rural designated shortage areas.
    18  Section 502.  Allocation of repayment amounts.
    19     In allocating funds for repayment, the director of the bureau
    20  shall, if possible, apportion the repayment funds so that 25% of
    21  the loans repaid will be for the loans of family or general
    22  practitioners, 25% for general internists, 25% for general
    23  pediatricians and 25% for obstetrician-gynecologists.
    24  Section 503.  Eligibility.
    25     To be considered for loan repayment assistance, an applicant
    26  shall:
    27         (1)  Have a medical degree from an accredited
    28     Pennsylvania medical school or osteopathic medical college,
    29     have completed an approved Pennsylvania graduate training
    30     program in primary medicine and be licensed to practice
    19900S1655B2263                  - 8 -

     1     medicine in Pennsylvania.
     2         (2)  Agree to serve in a designated shortage area as a
     3     primary care physician, as defined in this act, one year for
     4     each $50,000 in loans repaid by the department.
     5         (3)  For practice start-up loan repayment, have completed
     6     one full year of community-based solo primary care practice
     7     in a rural designated shortage area and have obtained a
     8     start-up loan from a local lending institution in the rural
     9     designated area; or, in the case of expansion of a practice
    10     to add one or two physicians, have completed one or more
    11     years of community-based solo primary care practice in the
    12     rural designated shortage area where expansion is sought.
    13  Section 504.  Conditions for certain assistance.
    14     (a)  Certain loans prior to act.--The bureau may provide
    15  assistance for the repayment of any start-up or expansion loan
    16  received by a physician through a local lending institution in
    17  the rural designated shortage area of Pennsylvania where the
    18  physician agrees, under the terms of this section, to practice,
    19  except that loans with any lender that have been executed prior
    20  to the effective date of this act may be considered for
    21  repayment.
    22     (b)  Loans in default.--The bureau may not provide repayment
    23  assistance for a loan that is in default at the time of the
    24  physician's application.
    25     (c)  Community-based practice.--The bureau may not provide
    26  practice start-up loan repayment assistance unless the primary
    27  care physician has completed one year of community-based solo
    28  practice. The bureau may not provide practice expansion loans
    29  unless the applicant has completed one or more years of such
    30  practice in the rural designated shortage area in which he seeks
    19900S1655B2263                  - 9 -

     1  to expand practice.
     2  Section 505.  Terms and conditions of agreements.
     3     Each recipient of a repayment loan shall enter into a written
     4  contract with the bureau, which shall be considered a contract
     5  with the Commonwealth. In executing contracts, the bureau shall
     6  give priority to those applicants who agree to practice a
     7  minimum of three years in a rural designated shortage area. The
     8  contract shall include the following terms and conditions:
     9         (1)  The physician shall serve one year in the designated
    10     shortage area for each repayment up to $50,000 made on his
    11     behalf to the lender.
    12         (2)  In no event shall service for less than one full
    13     year entitle the participant to any benefits under the loan
    14     repayment program.
    15         (3)  The participant shall treat patients in the area
    16     eligible for Medicaid and Medicare and develop a sliding fee
    17     scale for low-income patients.
    18         (4)  The participant shall practice full time in the
    19     rural designated shortage area.
    20         (5)  The participant shall permit the bureau to monitor
    21     the practice to determine compliance with the program.
    22         (6)  The bureau shall certify compliance with the terms
    23     of the program for purposes of receipt by the participant of
    24     loans for years subsequent to the initial year of the loan.
    25         (7)  The contract shall be renewable on a yearly basis
    26     upon certification by the bureau that the participant has
    27     complied with the terms of the contract.
    28         (8)  In the event of the participant's death or total or
    29     permanent disability, the bureau shall nullify the service
    30     obligation of the recipient and the bureau shall repay the
    19900S1655B2263                 - 10 -

     1     loan in full.
     2         (9)  In the event that the participant is convicted of a
     3     felony or misdemeanor or the participant commits an act of
     4     gross negligence in the performance of service obligations,
     5     or where the license to practice has been revoked or
     6     suspended, the bureau shall have the authority to terminate
     7     the participant's service in the program and demand repayment
     8     of the outstanding loan.
     9         (10)  No participant may receive repayment assistance for
    10     more than five years.
    11         (11)  Loan recipients who fail to fulfill the obligations
    12     contracted for shall pay to the bureau a sum equal to three
    13     times the amount received plus interest from the date of the
    14     breach at a rate of 2% above the prime rate at the time of
    15     the breach.
    16  Section 506.  Assignment criteria.
    17     The bureau shall establish criteria for assigning
    18  participants to the rural designated shortage area. In making
    19  the assignments, the bureau shall match the characteristics and
    20  preferences of the participant with those of the area,
    21  population group or health care facility to the extent possible
    22  to maximize the probability of the participant's remaining in
    23  the area upon completion of the assignment period.
    24  Section 507.  Other sources of funding.
    25     The bureau shall seek Federal funds to carry out the purposes
    26  of this chapter and may accept gifts, grants and donations from
    27  other sources. All sums appropriated by the General Assembly to
    28  carry out the purposes of this chapter in a fiscal year shall be
    29  used for providing repayment assistance for practice start-up or
    30  expansion loans.
    19900S1655B2263                 - 11 -

     1                             CHAPTER 7
     2                     RESIDENCY PRACTICE PROGRAM
     3  Section 701.  Residency practice incentives program in rural
     4                 clinics.
     5     The bureau shall encourage and coordinate the creation or
     6  expansion of a rural primary care residency program between the
     7  Commonwealth's teaching hospitals and health care facilities and
     8  community groups which provide at least one-month rotations in
     9  clinics established in rural designated shortage areas.
    10  Section 702.  Guidelines.
    11     In determining the distribution of grants to teaching
    12  hospitals, health care facilities and community groups which
    13  establish primary care residency programs in rural clinics, the
    14  bureau shall establish criteria in accordance with the following
    15  guidelines:
    16         (1)  Preference shall be given to programs which are to
    17     be established at locations which exhibit potential for
    18     extending primary care practice physician availability to
    19     rural designated shortage areas.
    20         (2)  Preference shall be given to programs located away
    21     from areas in which medical schools and osteopathic medical
    22     colleges are located.
    23         (3)  Preference shall be given to programs developed by
    24     health care facilities having affiliation agreements with
    25     teaching hospitals located within this Commonwealth.
    26         (4)  The degree of local support for the program in the
    27     form of the establishment of clinics, matching funding,
    28     services or other in-kind resources.
    29         (5)  The opportunity for the provision of education and
    30     cultural resources.
    19900S1655B2263                 - 12 -

     1  Section 703.  Funding.
     2     The bureau shall provide for this program through Medical
     3  Assistance direct medical education payments.
     4  Section 704.  Report to General Assembly.
     5     The bureau shall annually, on or before March 15, report to
     6  the Senate and the House of Representatives the results and
     7  progress of the program established under this chapter.
     8                             CHAPTER 9
     9                          FAMILY PRACTICE
    10  Section 901.  Family Practice Incentive Grant Demonstration
    11                 Program.
    12     The bureau shall administer a grant program to be known as
    13  the Family Practice Incentive Demonstration Program.
    14  Section 902.  Grants.
    15     The bureau shall administer this program by allocating sums
    16  appropriated for this purpose by the General Assembly to the
    17  medical schools and osteopathic medical colleges of the
    18  Commonwealth as follows:
    19         (1)  One primary grant of $100,000 per year shall be
    20     awarded to the medical school or osteopathic medical college
    21     with the most innovative project to increase the total number
    22     of family practitioners in this Commonwealth and the numbers
    23     of family practitioners choosing to serve in rural designated
    24     shortage areas.
    25         (2)  A one-time $50,000 follow-up grant may be awarded to
    26     a prior year's grantee.
    27  Section 903.  Report to General Assembly.
    28     The bureau shall report annually on or before March 15 to the
    29  Senate and the House of Representatives on the progress of the
    30  program established under this act.
    19900S1655B2263                 - 13 -

     1  Section 904.  Expiration of chapter.
     2     This chapter shall expire on June 30, 1995, unless reenacted
     3  by the General Assembly.
     4                             CHAPTER 11
     5                         HEALTH CARE GRANTS
     6  Section 1101.  Health Care Transitional Grant Program.
     7     The bureau shall:
     8         (1)  Provide technical assistance to rural hospitals to
     9     complete the forms necessary for the development of projects
    10     eligible for Federal rural health care transitional grants.
    11         (2)  Notify eligible rural hospitals and rural hospitals
    12     under 150 beds of the existence of Federal programs impacting
    13     upon the provision of services in rural areas and shall
    14     provide technical assistance necessary to apply for projects
    15     which advance health care services to enhance the quality of
    16     care provided in rural areas.
    17         (3)  Consider rural hospitals which would qualify for
    18     consideration under the Federal program, except for size, for
    19     participation in a State-funded program.
    20         (4)  Screen applicant hospitals to determine which shall
    21     receive consideration for the Federal Rural Health Transition
    22     Grant Program and submit the names of eligible applicants to
    23     the Office of the Governor for transmission to the United
    24     States Department of Health and Human Services.
    25         (5)  Upon the awarding of grants, determine which of the
    26     projects forwarded by the Governor's Office to the United
    27     States Department of Health and Human Services failed to
    28     receive funding. The bureau shall then consider those
    29     projects and the projects of other rural hospitals which meet
    30     all the Federal criteria, except size, in the awarding of
    19900S1655B2263                 - 14 -

     1     State grants.
     2  Section 1102.  Funding.
     3     All sums appropriated to the bureau for the purpose of this
     4  chapter shall be allocated solely for the funding of State
     5  projects. No moneys allocated hereunder shall be used for the
     6  administration of this section by the department.
     7                             CHAPTER 13
     8                       SCHOOL HEALTH PROGRAMS
     9  Section 1301.  School Health Care Clinic Pilot Program.
    10     There is hereby established the Rural School Health Care
    11  Clinic Pilot Program, to provide pediatric, dental,
    12  immunization, health and nutrition education and physical
    13  therapy services to children in rural areas. This program shall
    14  be administered by the bureau.
    15  Section 1302.  Purpose.
    16     (a)  School clinics.--Grants provided under this chapter
    17  shall be used to create school health care clinics in rural
    18  designated shortage areas on a pilot program basis to serve as a
    19  model for future Statewide implementation.
    20     (b)  Assistance to health care providers, etc.--The bureau
    21  shall award grants to assist local and regional health care
    22  providers, consumers and organizations in rural designated
    23  shortage areas in providing services as enumerated in subsection
    24  (a) to preschool, elementary and junior high school-aged
    25  children at a school site.
    26     (c)  Certain uses prohibited.--Funds provided under this
    27  grant program shall not be used for distributing birth control
    28  devices or providing pregnancy counseling.
    29  Section 1303.  Pilot projects.
    30     Pilot projects selected by the bureau shall include proposals
    19900S1655B2263                 - 15 -

     1  that address the health care needs of children in rural
     2  designated shortage areas and which would result in the
     3  following:
     4         (1)  The coordination of services of health care
     5     providers at a school site.
     6         (2)  The delivery of health care services to 10,000
     7     children.
     8         (3)  The provision of free health care service to
     9     children who have no health insurance coverage through a
    10     nominal waivable fee.
    11         (4)  The involvement of parents through the creation of a
    12     parental advisory board.
    13         (5)  The sharing of resources among the coordination of
    14     service delivery by providers.
    15         (6)  In-kind contributions of equipment, space or
    16     services of a school nurse by the host school.
    17         (7)  Increased accessibility to the full continuum of
    18     health care services, including illness prevention, for
    19     preschool, elementary and junior high school children in the
    20     rural designated shortage area.
    21         (8)  Identification of regulatory and other impediments
    22     to the coordination of service delivery and sharing of
    23     resources by health care providers.
    24  Section 1304.  Conditions of projects.
    25     Pilot projects shall not be approved for a time period
    26  exceeding three years. The bureau shall approve pilot project
    27  grant awards of $60 per student to be served in any one 12-month
    28  period. Grants shall be renewed annually for up to three
    29  consecutive years. If it is determined that a grantee is using
    30  funds for purposes inconsistent with this section, the bureau
    19900S1655B2263                 - 16 -

     1  may withdraw approval of the project and require repayment of
     2  all or part of such grant to the Commonwealth. Any funds thus
     3  repaid shall be used only for other pilot projects approved
     4  under this section. The bureau shall require reports to be
     5  prepared and submitted for each project by the grantees at such
     6  times and in such manner as are consistent with the purposes of
     7  this section.
     8  Section 1305.  Removal of impediments.
     9     Upon the request of the applicant, the bureau shall provide
    10  expertise in the removal of impediments or barriers to the
    11  coordination of health care services at a school site.
    12  Section 1306.  Further duties of bureau.
    13     For the purpose of promoting maximum effectiveness of this
    14  program, the bureau shall:
    15         (1)  Arrange for the waiver of impediments to the
    16     successful implementation and testing of the pilot project,
    17     provided there is a finding by the bureau that the health,
    18     safety and general welfare of the children receiving health
    19     care services will not be impaired.
    20         (2)  Consult with Federal, State and local officials to
    21     secure their cooperation in coordinating related programs and
    22     regulatory waivers.
    23         (3)  In consultation with the advisory committee, provide
    24     the General Assembly with legislative recommendations to
    25     facilitate the provisions of this section.
    26  Section 1307.  Funding.
    27     The bureau shall administer the program with sums
    28  appropriated by the General Assembly.
    29                             CHAPTER 15
    30                        RURAL HEALTH NETWORK
    19900S1655B2263                 - 17 -

     1  Section 1501.  Rural Health and Human Services Network Pilot
     2                 Program.
     3     (a)  Establishment.--There is hereby created a Rural Health
     4  and Human Services Network Pilot Program which shall be
     5  administered by the bureau.
     6     (b)  Grants.--The bureau shall provide grants from the sums
     7  appropriated by the General Assembly to establish networks of
     8  health care and human service providers in rural areas.
     9  Section 1502.  Eligibility.
    10     The bureau shall consider grant proposals addressing the
    11  special needs of rural designated shortage areas offered by
    12  applicants who can demonstrate the capability of planning with
    13  providers and consumers for the creation of a viable network of
    14  rural health care and human service providers, whether
    15  proprietary, nonprofit or public. To be considered for grants,
    16  proposals shall:
    17         (1)  Result in the merger, integration, reorganization or
    18     coordination of health care and human services.
    19         (2)  Promote cost reduction.
    20         (3)  Improve rural access to a continuum of health care
    21     and human services.
    22         (4)  Result in illness prevention.
    23         (5)  Capitalize on the strengths of existing providers.
    24         (6)  Identify methods of addressing regulatory and other
    25     barriers to the merger, integration, reorganization or
    26     coordination of services.
    27  Section 1503.  Technical advice.
    28     The bureau shall provide technical expertise on the
    29  identification of barriers to the merger, integration,
    30  reorganization or coordination of services.
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     1  Section 1504.  Grant amounts.
     2     Grants shall be awarded in amounts ranging from $10,000 to
     3  $50,000 per annum and may be awarded for a period not to exceed
     4  three years. In determining the amount of an award, the bureau
     5  shall consider the nature of the pilot project, the number of
     6  provider and consumer entities involved and the likely increase
     7  in access to and availability of health care and human services
     8  to rural residents.
     9  Section 1505.  Reports.
    10     The grantees shall be monitored by the bureau and required to
    11  prepare reports at such times and in such manner as the bureau
    12  shall require. If it is determined that a grantee is using grant
    13  funds for purposes inconsistent with this chapter, the bureau
    14  shall require repayment of all or part of the grant to the
    15  Commonwealth.
    16  Section 1506.  Further duties of bureau.
    17     To promote maximum effectiveness of any network created under
    18  this chapter, the bureau shall:
    19         (1)  Arrange for the waiver of impediments to the
    20     implementation and testing of the project, so long as the
    21     waiver is consistent with the health, safety and general
    22     welfare of the rural residents who are to receive the
    23     services.
    24         (2)  Consult with Federal, State and local officials to
    25     secure the coordination of related programs and obtain
    26     waivers.
    27         (3)  Provide the General Assembly with legislative
    28     recommendations to facilitate the provisions of this chapter.
    29                             CHAPTER 17
    30                       MOBILE HEALTH CLINICS
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     1  Section 1701.  Mobile Health Clinic Demonstration Program.
     2     There is hereby established the Mobile Health Clinic
     3  Demonstration Program which shall be administered by the bureau.
     4  Section 1702.  Required clinics.
     5     The bureau shall:
     6         (1)  Purchase two vehicles and medical equipment to
     7     furnish the vehicles to establish two Mobile Health Clinic
     8     Demonstration Programs in rural designated shortage areas of
     9     this Commonwealth.
    10         (2)  Provide two grants from sums appropriated by the
    11     General Assembly to health care providers, health care
    12     networks, teaching hospitals or dental schools to assist in
    13     the purchase of vehicles, medical or dental equipment or the
    14     coordination of activities leading to the establishment of
    15     one mobile health clinic and one mobile dental clinic in
    16     rural designated shortage areas.
    17         (3)  In awarding grants, give preference to programs
    18     which evidence coordination of existing services and the
    19     pooling of resources by applicants.
    20         (4)  Award grants in an amount which is the lesser of
    21     $600,000 or 50% of the cost of the vehicle, equipment or
    22     coordination of activities leading to the establishment of a
    23     rural mobile health clinic.
    24         (5)  Award grants to prior year's grantees in an amount
    25     which is the lesser of $600,000 or 50% of the program project
    26     cost to enter a follow-up phase for the prior year's program.
    27  Section 1703.  Conditions of grants.
    28     (a)  Eligibility.--All health care providers, health care
    29  networks, teaching hospitals and dental schools located in this
    30  Commonwealth may apply for grants to provide mobile health
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     1  clinic services to rural designated shortage areas in this
     2  Commonwealth.
     3     (b)  Expenses.--Bureau expenses may be no greater than 10% of
     4  the sums appropriated by the General Assembly for the purposes
     5  of this chapter.
     6     (c)  Annual report.--The department shall annually report, on
     7  or before March 15, to the General Assembly on the program
     8  established under this chapter.
     9  Section 1704.  Expiration of chapter.
    10     This chapter shall expire June 30, 1995, unless reenacted by
    11  the General Assembly.
    12                             CHAPTER 21
    13                      MISCELLANEOUS PROVISIONS
    14  Section 2101.  Appropriations.
    15     (a)  Department.--The sum of $500,000, or as much thereof as
    16  may be necessary, is hereby appropriated to the Department of
    17  Health for the fiscal period July 1, 1990, to June 30, 1991, for
    18  start-up costs and expenses of the Bureau of Rural Health Care
    19  Services.
    20     (b)  Bureau.--The following sums, or as much thereof as may
    21  be necessary, are hereby appropriated to the Bureau of Rural
    22  Health Care Services for the fiscal period July 1, 1990, to June
    23  30, 1991, and shall be allocated as follows:
    24         (1)  The sum of $700,000 to carry out Chapter 9.
    25         (2)  The sum of $500,000 to carry out Chapter 11.
    26         (3)  The sum of $600,000 to carry out Chapter 13.
    27         (4)  The sum of $250,000 to carry out Chapter 15.
    28         (5)  The sum of $2,400,000 to carry out Chapter 17.
    29  Section 2102.  Effective date.
    30     This act shall take effect July 1, 1990, or immediately,
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     1  whichever is later.




















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