operated by the center or at any other inpatient or out-
patient settings determined appropriate by the center to 
meet the needs of its patents.’’. 
(b) LOCATION OF SERVICE DELIVERY SITES.—Sec-
tion 330(a) of the Public Health Service Act (42 U.S.C. 
254b(a)) is amended by adding at the end the following: 
‘‘(3) CONSIDERATIONS.— 
‘‘(A) LOCATION
OF
SITES.—Subject to 
subparagraph (B), a center shall not be re-
quired to locate its service facility or facilities 
within a designated medically underserved area 
in order to serve either the residents of its 
catchment area or a special medically under-
served population comprised of migratory and 
seasonal agricultural workers, the homeless, or 
residents of public housing, if that location is 
determined by the center to be reasonably ac-
cessible to and appropriate to meet the needs of 
the medically underserved residents of the cen-
ter’s catchment area or the special medically 
underserved population, in accordance with sub-
paragraphs (A) and (J) of subsection (k)(3). 
‘‘(B) LOCATION
WITHIN
ANOTHER
CEN-
TER’S AREA.—The Secretary may permit appli-
cants for grants under this section to propose 
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the location of a service delivery site within an-
other center’s catchment area if the applicant 
demonstrates sufficient unmet need in such 
area and can otherwise justify the need for ad-
ditional Federal resources in the catchment 
area. In determining whether to approve such a 
proposal, the Secretary shall take into consider-
ation whether collaboration between the two 
centers exists, or whether the applicant has 
made reasonable attempts to establish such col-
laboration, and shall consider any comments 
timely submitted by the affected center con-
cerning the potential impact of the proposal on 
the availability or accessibility of services the 
affected center currently provides or the finan-
cial viability of the affected center.’’. 
(c) 
AFFILIATION
AGREEMENTS.—Section 
330(k)(3)(B) of the Public Health Service Act (42 U.S.C. 
254b(k)(3)(B)) is amended by inserting before the semi-
colon the following: ‘‘, including contractual arrangements 
as appropriate, while maintaining full compliance with the 
requirements of this section, including the requirements 
of subparagraph (H) concerning the composition and au-
thorities of the center’s governing board, and, except as 
otherwise provided in clause (ii) of such subparagraph, en-
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suring full autonomy of the center over policies, direction, 
and operations related to health care delivery, personnel, 
finances, and quality assurance’’. 
(d) 
GOVERNANCE
REQUIREMENTS.—Section 
330(k)(3) of the Public Health Service Act (42 U.S.C. 
254b(k)(3)) is amended— 
(1) in subparagraph (H)— 
(A) in clause (ii), by striking ‘‘; and’’ and 
inserting ‘‘, except that in the case of a public 
center (as defined in the second sentence of this 
paragraph), the public entity may retain au-
thority to establish financial and personnel poli-
cies for the center; and’’; 
(B) in clause (iii), by adding ‘‘and’’ at the 
end; and 
(C) by inserting after clause (iii) the fol-
lowing: 
‘‘(iv) in the case of a co-applicant with 
a public entity, meets the requirements of 
clauses (i) and (ii);’’; and 
(2) in the second sentence, by inserting before 
the period the following: ‘‘that is governed by a 
board that satisfies the requirements of subpara-
graph (H) or that jointly applies (or has applied) for 
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funding with a co-applicant board that meets such 
requirements’’. 
(e) ADJUSTMENT IN CENTER’S OPERATING PLAN 
AND BUDGET.—Section 330(k)(3)(I)(i) of the Public 
Health Service Act (42 U.S.C. 254b(k)(3)(I)(i)) is amend-
ed by inserting before the semicolon the following: ‘‘, 
which may be modified by the center at any time during 
the fiscal year involved if such modifications do not require 
additional grant funds, do not compromise the availability 
or accessibility of services currently provided by the center, 
and otherwise meet the conditions of subsection (a)(3)(B), 
except that any such modifications that do not comply 
with this clause, as determined by the health center, shall 
be submitted to the Secretary for approval’’. 
(f) JOINT PURCHASING ARRANGEMENTS FOR RE-
DUCED COST.—Section 330(l) of the Public Health Serv-
ice Act (42 U.S.C. 254b(l)) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’; and 
(2) by adding at the end the following: 
‘‘(2) ASSISTANCE WITH SUPPLIES AND SERV-
ICES
COSTS.—The Secretary, directly or through 
grants or contracts, may carry out projects to estab-
lish and administer arrangements under which the 
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costs of providing the supplies and services needed 
for the operation of federally qualified health centers 
are reduced through collaborative efforts of the cen-
ters, through making purchases that apply to mul-
tiple centers, or through such other methods as the 
Secretary determines to be appropriate.’’. 
(g) OPPORTUNITY TO CORRECT MATERIAL FAILURE 
REGARDING GRANT CONDITIONS.—Section 330(e) of the 
Public Health Service Act (42 U.S.C. 254b(e)) is amended 
by adding at the end the following: 
‘‘(6) OPPORTUNITY
TO
CORRECT
MATERIAL 
FAILURE
REGARDING
GRANT
CONDITIONS.—If the 
Secretary finds that a center materially fails to meet 
any requirement (except for any requirements 
waived by the Secretary) necessary to qualify for its 
grant under this subsection, the Secretary shall pro-
vide the center with an opportunity to achieve com-
pliance (over a period of up to 1 year from making 
such finding) before terminating the center’s grant. 
A center may appeal and obtain an impartial review 
of any Secretarial determination made with respect 
to a grant under this subsection, or may appeal and 
receive a fair hearing on any Secretarial determina-
tion involving termination of the center’s grant enti-
tlement, modification of the center’s service area, 
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termination of a medically underserved population 
designation within the center’s service area, disallow-
ance of any grant expenditures, or a significant re-
duction in a center’s grant amount.’’. 
SEC. 5. FUNDING FOR NATIONAL HEALTH SERVICE CORPS. 
Section 338H(a) of the Public Health Service Act (42 
U.S.C. 254q(a)) is amended to read as follows: 
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of carrying out this section, there is authorized 
to be appropriated, out of any funds in the Treasury not 
otherwise appropriated, the following: 
‘‘(1) For fiscal year 2010, $320,461,632. 
‘‘(2) For fiscal year 2011, $414,095,394. 
‘‘(3) For fiscal year 2012, $535,087,442. 
‘‘(4) For fiscal year 2013, $691,431,432. 
‘‘(5) For fiscal year 2014, $893,456,433. 
‘‘(6) For fiscal year 2015, $1,154,510,336. 
‘‘(7) For fiscal year 2016, and each subsequent 
fiscal year, the amount appropriated for the pre-
ceding fiscal year adjusted by the product of— 
‘‘(A) one plus the average percentage in-
crease in the costs of health professions edu-
cation during the prior fiscal year; and 
‘‘(B) one plus the average percentage 
change in the number of individuals residing in 
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health professions shortage areas designated 
under section 333 during the prior fiscal year, 
relative to the number of individuals residing in 
such areas during the previous fiscal year.’’. 
Æ 
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