To amend the Public Health Service Act with respect to health professions programs regarding the practice of pharmacy.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pharmacy Education Aid Act of 
2001''.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) Pharmacists are an important link in our Nation's 
        health care system. A critical shortage of pharmacists is 
        threatening the ability of community pharmacies to continue to 
        provide important prescription related services.
            (2) The Institute of Medicine (``IOM'') prepared a landmark 
        report on medical errors, including medication errors. In the 
        report, entitled ``To Err is Human: Building a Safer Health 
        System'', IOM indicated that medication errors can be partially 
        attributed to factors such as staff shortages; having too many 
        customers places great pressure on available staff, leading to 
        a lack of concentration.
            (3) In section 5 of Public Law 106-129, the Congress 
        acknowledged a growing demand for pharmacists by requiring the 
        Secretary of Health and Human Services to conduct a study to 
        determine whether there is a shortage of pharmacists in the 
        United States and, if so, to what extent.
            (4) The study required by Public Law 106-129 was conducted 
        by the Health Resources and Services Administration (``HRSA''). 
        The report from the study was submitted to the Congress in 
        December 2000, and is entitled ``The Pharmacist Workforce: A 
        Study in Supply and Demand for Pharmacists''.
            (5) The findings described in the HRSA report include the 
        following:
                    (A) ``While the overall supply of pharmacists has 
                increased in the past decade, there has been an 
                unprecedented demand for pharmacists and for 
                pharmaceutical care services, which has not been met by 
                the currently available supply.''
                    (B) The ``evidence clearly indicates the emergence 
                of a shortage of pharmacists over the past two years.''
                    (C) ``The factors causing the current shortage are 
                of a nature not likely to abate in the near future 
                without fundamental changes in pharmacy practice and 
                education.''
            (6) In the report, HRSA projects that the number of 
        prescriptions filled by community pharmacists will increase 20 
        percent by 2004. In contrast, the number of community 
        pharmacists is expected to increase only 6 percent by 2005.
            (7) The demand for pharmacists will increase as 
        prescription drug use continues to grow.
            (8) The Federal Government has a role and the 
        responsibility, through programs such as the National Health 
        Service Corps and programs under title VII of the Public Health 
        Service Act, to ensure access to pharmacists services. Although 
        the statutory provisions for the program for the National 
        Health Service Corps expressly reference physicians, dentists, 
        certified nurse midwives, certified nurse practitioners, and 
        physician assistants, there is no statutory reference to 
        pharmacists. The National Health Service Corps statute should 
        provide for the significant participation of pharmacists.

SEC. 3. INCLUSION OF PRACTICE OF PHARMACY IN PROGRAM FOR NATIONAL 
              HEALTH SERVICE CORPS.

    (a) Inclusion in Corps Mission.--Section 331(a)(3) of the Public 
Health Service Act (42 U.S.C. 254d(a)(3)) is amended--
            (1) in subparagraph (D), by adding at the end the 
        following: ``Such term includes pharmacist services.''; and
            (2) by adding at the end the following:
                    ``(E)(i) The term `pharmacist services' includes 
                medication therapy management services.
                    ``(ii) The term `medication therapy management 
                services', with respect to pharmacist services, 
                includes services to assure that medications are used 
                appropriately by patients; to enhance patients' 
                understanding of the appropriate use of medications; to 
                increase patients' adherence to prescription medication 
                regimens; to reduce the risk of adverse events 
                associated with medications; and to reduce the need for 
                other costly medical services through better management 
                of medication therapy. Such services may include case 
                management, disease management, drug therapy 
                management, patient training and education, counseling, 
                drug therapy problem resolution, medication 
                administration, the provision of special packaging, or 
                other services that enhance the use of prescription 
                medications.''.
    (b) Scholarship Program.--Section 338A(a)(1) of the Public Health 
Service Act (42 U.S.C. 254l(a)(1)) is amended by inserting 
``pharmacists,'' after ``physicians,''.
    (c) Loan Repayment Program.--Section 338B(a)(1) of the Public 
Health Service Act (42 U.S.C. 254l-1(a)(1)) is amended by inserting 
``pharmacists,'' after ``physicians,''.
    (d) Funding.--Section 338H(b)(2) of the Public Health Service Act 
(42 U.S.C. 254q(b)(2)) is amended--
            (1) in subparagraph (A), by inserting before the period the 
        following: ``, which may include such contracts for individuals 
        who are in a course of study or program leading to a pharmacy 
        degree''; and
            (2) by adding at the end the following subparagraph:
                    ``(C) Scholarships for first-year study in 
                pharmacy.--Of the amounts appropriated under paragraph 
                (1) for a fiscal year, the Secretary shall obligate not 
                less than 10 percent for the purpose of providing 
                contracts for scholarships under this subpart to 
                individuals who are entering the first year of study in 
                a course of study or program leading to a pharmacy 
                degree. Amounts obligated under this subparagraph shall 
                be in addition to amounts obligated under subparagraph 
                (A).''.

SEC. 4. CERTAIN HEALTH PROFESSIONS PROGRAMS REGARDING PRACTICE OF 
              PHARMACY.

    Part E of title VII of the Public Health Service Act (42 U.S.C. 
294n et seq.) is amended by adding at the end the following subpart:

                ``Subpart 3--Certain Workforce Programs

``SEC. 771. PRACTICING-PHARMACIST WORKFORCE.

    ``(a) Recruiting and Retaining Students and Faculty.--
            ``(1) In general.--The Secretary may make awards of grants 
        or contracts to qualifying schools of pharmacy (as defined in 
        subsection (f)) for the purpose of carrying out programs for 
        recruiting and retaining students and teaching faculty for such 
        schools, including programs to provide scholarships for 
        attendance at such schools to full-time students who have 
        financial need for the scholarships and who demonstrate a 
        commitment to becoming practicing pharmacists or faculty 
        regarding the practice of pharmacy.
            ``(2) Preference in providing scholarships.--An award may 
        not be made under paragraph (1) unless the qualifying school of 
        pharmacy involved agrees that, in providing scholarships 
        pursuant to the award, the school will give preference to 
        students for whom the costs of attending the school would 
        constitute a severe financial hardship.
    ``(b) Loan Repayment Program Regarding Faculty Positions.--
            ``(1) In general.--The Secretary may establish a program of 
        entering into contracts with individuals described in paragraph 
        (2) under which the individuals agree to serve as members of 
        the faculties of qualifying schools of pharmacy in 
        consideration of the Federal Government agreeing to pay, for 
        each year of such service, not more than $20,000 of the 
        principal and interest of the educational loans of such 
        individuals.
            ``(2) Eligible individuals.--The individuals referred to in 
        paragraph (1) are individuals who--
                    ``(A) have a doctoral degree in pharmacy or the 
                pharmaceutical sciences; or
                    ``(B) are enrolled in a school of pharmacy and are 
                in the final academic year of such school in a program 
                leading to such a doctoral degree.
            ``(3) Requirements regarding faculty positions.--The 
        Secretary may not enter into a contract under paragraph (1) 
        unless--
                    ``(A) the individual involved has entered into a 
                contract with a qualifying school of pharmacy to serve 
                as a member of the faculty of the school for not less 
                than 2 years;
                    ``(B) the contract referred to in subparagraph (A) 
                provides that, in serving as a member of the faculty 
                pursuant to such subparagraph, the individual will--
                            ``(i) serve full time; or
                            ``(ii) serve as a member of the adjunct 
                        clinical faculty and in so serving will 
                        actively supervise pharmacy students for 25 
                        academic weeks per year (or such greater number 
                        of academic weeks as may be specified in the 
                        contract); and
                    ``(C) such contract provides that--
                            ``(i) the school will, for each year for 
                        which the individual will serve as a member of 
                        the faculty under the contract with the school, 
                        make payments of the principal and interest due 
                        on the educational loans of the individual for 
                        such year in an amount equal to the amount of 
                        such payments made by the Secretary for the 
                        year;
                            ``(ii) the payments made by the school 
                        pursuant to clause (i) on behalf of the 
                        individual will be in addition to the pay that 
                        the individual would otherwise receive for 
                        serving as a member of such faculty; and
                            ``(iii) the school, in making a 
                        determination of the amount of compensation to 
                        be provided by the school to the individual for 
                        serving as a member of the faculty, will make 
                        the determination without regard to the amount 
                        of payments made (or to be made) to the 
                        individual by the Federal Government under 
                        paragraph (1).
            ``(4) Applicability of certain provisions.--The provisions 
        of sections 338C, 338G, and 338I shall apply to the program 
        established in paragraph (1) to the same extent and in the same 
        manner as such provisions apply to the National Health Service 
        Corps Loan Repayment Program established in subpart III of part 
        D of title III, including the applicability of provisions 
        regarding reimbursements for increased tax liability and 
        provisions regarding bankruptcy.
            ``(5) Waiver regarding school contributions.--The Secretary 
        may waive the requirement established in paragraph (3)(C) if 
        the Secretary determines that the requirement will impose an 
        undue financial hardship on the school involved.
    ``(c) Information Technology.--The Secretary may make awards of 
grants or contracts to qualifying schools of pharmacy for the purpose 
of assisting such schools in acquiring and installing computer-based 
systems to provide pharmaceutical education. Education provided through 
such systems may be graduate education, professional education, or 
continuing education. The computer-based systems may be designed to 
provide on-site education, or education at remote sites (commonly 
referred to as distance learning), or both.
    ``(d) Facilities.--
            ``(1) In general.--The Secretary may make awards of grants 
        or contracts to qualifying schools of pharmacy for construction 
        projects to expand, remodel, renovate, or alter existing 
        facilities for such schools or to provide new facilities for 
        the schools.
            ``(2) Certain restrictions.--An award under paragraph (1) 
        may not be expended for the costs of acquiring land or for off-
        site improvements.
            ``(3) Recapture of payments.--If, during the 20-year period 
        beginning on the date of the completion of construction 
        pursuant to paragraph (1)--
                    ``(A) the school of pharmacy involved, or other 
                owner of the facility, ceases to be a public or 
                nonprofit private entity; or
                    ``(B) the facility involved ceases to be used for 
                the purposes for which it was constructed (unless the 
                Secretary determines, in accordance with regulations, 
                that there is good cause for releasing the school or 
                other owner from such obligation);
        the United States is entitled to recover from the school or 
        other owner of the facility the amount bearing the same ratio 
        to the current value (as determined by an agreement between the 
        parties or by action brought in the United States District 
        Court for the district in which such facility is situated) of 
        the facility as the amount of the Federal participation bore to 
        the cost of the construction of such facility.
    ``(e) Requirement Regarding Education in Practice of Pharmacy.--
With respect to the qualifying school of pharmacy involved, the 
Secretary shall ensure that programs and activities carried out with 
Federal funds provided under this section have the goal of educating 
students to become licensed pharmacists, or the goal of providing for 
faculty to educate students to become licensed pharmacists.
    ``(f) Qualifying School of Pharmacy.--For purposes of this section, 
the term `qualifying school of pharmacy' means a school of pharmacy (as 
defined in section 799B) that, in providing clinical experience for 
students, requires that the students serve in a clinical rotation in 
which pharmacist services (as defined in section 331(a)(3)(E)) are 
provided at or for--
            ``(1) a medical facility that serves a substantial number 
        of individuals who reside in or are members of a medically 
        underserved community (as so defined);
            ``(2) an entity described in any of subparagraphs (A) 
        through (L) of section 340B(a)(4) (relating to the definition 
        of covered entity);
            ``(3) a health care facility of the Department of Veterans 
        Affairs or of any of the Armed Forces of the United States;
            ``(4) a health care facility of the Bureau of Prisons;
            ``(5) a health care facility operated by, or with funds 
        received from, the Indian Health Service; or
            ``(6) a disproportionate share hospital under section 1923 
        of the Social Security Act.
    ``(g) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary for each of the fiscal years 2002 through 2006.''.

Summary: Pharmacy Education Aid Act of 2001 - Amends the Public Health Act to include pharmacist services within the National Health Service Corps program of scholarships, including first-year pharmacy studies, loans, and funding. Authorizes the Secretary of Health and Human Services to award grants and contracts to qualifying pharmacy schools for: (1) student and faculty recruitment and retraining, with scholarship preference for students with financial need, (2) computer-based pharmaceutical education systems. And (3) facilities construction. Authorizes the Secretary to establish a loan repayment program for qualifying individuals who become pharmacy school faculty.