SEC. 2. DEMONSTRATION PROGRAMS TO ENCOURAGE
HEALTH PROFESSIONALS TO PRACTICE IN
RURAL AREAS.
Part B of title VII of the Public Health Service Act
(42 U.S.C. 293 et seq.) is amended by adding at the end
the following:
‘‘SEC. 742. DEMONSTRATION PROGRAMS TO ENCOURAGE
HEALTH PROFESSIONALS TO PRACTICE IN
RURAL AREAS.
‘‘(a) AUTHORIZATION.—The Secretary of Health and
Human Services, acting through the Director of the Office
of Rural Health Policy, may award grants to 5 accredited
schools of medicine or accredited schools of nursing to en-
able each such school to conduct a demonstration program
to encourage more health professionals to practice in rural
areas.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN
GENERAL.—Amounts provided as a
grant under subsection (a) shall be used for the fol-
lowing:
‘‘(A) Developing new programs and im-
proving existing programs for encouraging
youth in rural areas to enter health professions.
‘‘(B) Strengthening and stabilizing the sys-
tem of training of health professionals that are
needed (as determined by the Secretary) in
rural areas.
‘‘(C) Expanding the network of rural train-
ing tracks in health professions.
‘‘(2) FAMILY MEDICINE; NURSING.—Of the 5
grants awarded under this section—
‘‘(A) at least 1 shall be for a demonstra-
tion program for physicians in family medicine
that includes a regional consortium with 3 or
more family medicine residency programs
that—
‘‘(i) each have a residency rural train-
ing program; and
‘‘(ii) are located in 3 or more States;
and
‘‘(B) at least 1 shall be for a demonstra-
tion program for nurses, including registered
nurses, nurse anesthetists, and nurse practi-
tioners.
‘‘(c) PRIORITY.—In awarding grants under this sec-
tion, the Secretary shall give priority to accredited schools
of medicine or nursing that—
‘‘(1) have a residency program or clinical rota-
tion with on-site rural training of a duration of at
least 2 months; and
‘‘(2) provide a comprehensive approach to im-
proving health profession shortages in rural areas
that includes recruiting students from rural areas
and placing graduates in rural communities.
‘‘(d) MATCHING REQUIREMENT.—
‘‘(1) IN GENERAL.—With respect to the costs of
a demonstration program to be carried out under
subsection (a) by an applicant, the Secretary may
not award a grant to the applicant unless the appli-
cant agrees to make available (directly or through
donations from public or private entities) non-Fed-
eral contributions toward such costs in an amount
that is not less than 50 percent of such costs.
‘‘(2) DETERMINATION
OF
AMOUNT
CONTRIB-
UTED.—Non-Federal contributions required in para-
graph (1) may be in cash or in kind, fairly evalu-
ated, including plant, equipment, or services.
Amounts provided by the Federal Government, or
services assisted or subsidized to any significant ex-
tent by the Federal Government, may not be in-
cluded in determining the amount of such non-Fed-
eral contributions.
‘‘(e) DURATION.—The Secretary shall award each
grant under this section for a period of 3 years.
‘‘(f) DEFINITIONS.—For purposes of this section:
‘‘(1) 
ACCREDITED.—The 
term 
‘accredited’
means—
‘‘(A) for a school of medicine, accredited
by the Liaison Committee on Medical Edu-
cation;
‘‘(B) for a school of nursing, accredited by
the Commission on Collegiate Nursing Edu-
cation; and
‘‘(C) for a school of nursing relative to a
nurse anesthesia program, accredited by the
Council on Accreditation of Nurse Anesthesia
Educational Programs.
‘‘(2) SCHOOL OF NURSING.—The term ‘school
of nursing’ has the meaning given to that term
under section 801.
‘‘(g) REPORT.—Not later than 6 months after the
end of the 3-year period of the demonstration programs
conducted with grants under this section, the Secretary
shall submit to the Congress a report containing findings
and recommendations on the effectiveness of the dem-
onstration programs in addressing the shortages of health
care professionals in rural areas.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section
$20,000,000 for each of fiscal years 2003 through 2005.’’.
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