I 
108TH CONGRESS 
2D SESSION 
H. R. 4016
To amend the Public Health Service Act to provide for the education and 
training of allied health professionals in exchange for a service commit-
ment, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2004
Mr. STEARNS (for himself and Mr. STRICKLAND) introduced the following bill; 
which was referred to the Committee on Energy and Commerce 
A BILL 
To amend the Public Health Service Act to provide for 
the education and training of allied health professionals 
in exchange for a service commitment, and for other 
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Allied Health Profes-
sions Reinvestment Act of 2004’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows:
(1) The Bureau of the Census, the Institute of 
Medicine, the Bureau of Labor Statistics, and State 
hospital associations highlight the increased demand 
for acute and chronic health care services among 
both the general population and a rapidly growing 
aging portion of the population. 
(2) The calls for reduction in medical errors, in-
creased patient safety, and increased quality of care 
have resulted in an amplified call for allied health 
professionals to provide health care services. 
(3) Several allied health professions are charac-
terized by workforce shortages, declining enrollments 
in allied health education programs, or a combina-
tion of both factors, and hospital officials have re-
ported vacancy rates in positions occupied by allied 
health professionals. 
SEC. 3. DEFINITIONS. 
Section 799B of the Public Health Service Act (42 
U.S.C. 295p) is amended—
(1) by redesignating paragraphs (5) through 
(11) as paragraphs (6) through (12), respectively; 
and 
(2) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) ALLIED HEALTH PROFESSION.—The term 
‘allied health profession’ means any profession prac-
ticed by an individual in his or her capacity as an 
allied health professional.’’. 
SEC. 4. ALLIED HEALTH PROFESSIONS. 
(a) AMENDMENT.—Title VII of the Public Health 
Service Act (42 U.S.C. 292 et seq.) is amended—
(1) by redesignating part F as part G; and 
(2) by adding after part E the following: 
‘‘PART F—ALLIED HEALTH 
‘‘SEC. 780. PUBLIC SERVICE ANNOUNCEMENTS. 
‘‘(a) IN GENERAL.—The Secretary shall develop and 
issue public service announcements that advertise and pro-
mote the allied health professions, highlight the advan-
tages and rewards of allied health professions, and encour-
age individuals to enter the allied health professions. 
‘‘(b) METHOD.—The public service announcements 
described in subsection (a) shall be broadcast through ap-
propriate media outlets, including television or radio, and 
other methods approved by the Secretary in a manner in-
tended to reach as wide and diverse an audience as pos-
sible.
‘‘SEC. 780A. STATE AND LOCAL PUBLIC SERVICE AN-
NOUNCEMENTS. 
‘‘(a) IN GENERAL.—The Secretary may award grants 
to eligible entities to support State and local advertising 
campaigns through appropriate media outlets to promote 
the allied health professions and highlight the advantages 
and rewards of the allied health professions. 
‘‘(b) USE OF FUNDS.—An eligible entity that receives 
a grant under subsection (a) shall use funds received 
through such grant to acquire local television and radio 
time, place advertisements in local newspapers, or post in-
formation on billboards or on the Internet in a manner 
intended to reach as wide and diverse an audience as pos-
sible, in order to—
‘‘(1) advertise and promote the allied health 
professions; 
‘‘(2) promote allied health professions education 
programs; 
‘‘(3) inform the public of financial assistance 
regarding such education programs; 
‘‘(4) highlight individuals in the community who 
are practicing allied health professions in order to 
recruit new allied health professionals; or 
‘‘(5) provide any other information to recruit 
individuals for the allied health professions.
‘‘(c) LIMITATION.—An eligible entity that receives a 
grant under subsection (a) shall not use funds received 
through such grant to advertise particular employment op-
portunities. 
‘‘(d) ELIGIBLE ENTITY.—For purposes of this sec-
tion, the term ‘eligible entity’ means an entity that is—
‘‘(1) a professional, national, or State allied 
health association; 
‘‘(2) a State health care provider; or 
‘‘(3) an association of entities that are each a 
health care facility, an allied health education pro-
gram, or an entity that provides similar services or 
serves a like function. 
‘‘SEC. 780B. SCHOLARSHIP PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary may carry out a 
program of entering into contracts with eligible individuals 
under which such individuals agree to serve as allied 
health professionals for the period described in subsection 
(e) at a health care facility with a critical shortage of allied 
health professionals, in consideration of the Federal Gov-
ernment agreeing to provide to the individuals scholar-
ships for the cost of tuition at schools of allied health in 
allied health professions curricula. 
‘‘(b) ELIGIBLE INDIVIDUALS.—For purposes of this 
section, the term ‘eligible individual’ means an individual
who is enrolled or accepted for enrollment as a full-time 
or part-time student in a school of allied health. 
‘‘(c) SELECTION.—In awarding scholarships under 
this section, the Secretary shall select a range of full-time 
and part-time students enrolled in a certificate, associate, 
bachelor’s, or graduate program. 
‘‘(d) AMOUNT.—The amount of a scholarship to an 
eligible individual under this section may not exceed 
$10,000 for any academic year. 
‘‘(e) SERVICE REQUIREMENT.—
‘‘(1) IN
GENERAL.—The Secretary may not 
enter into a contract with an eligible individual 
under this section unless the individual agrees to 
serve as an allied health professional at a health 
care facility with a critical shortage of allied health 
professionals for a period of full-time service of not 
less than 1 year for each academic year for which 
the individual receives a scholarship under this sec-
tion, or for a period of part-time service in accord-
ance with paragraph (2). 
‘‘(2) PART-TIME SERVICE.—An individual may 
complete the period of service described in para-
graph (1) on a part-time basis if the individual has 
a written agreement that—
‘‘(A) is entered into by the facility and the 
individual and is approved by the Secretary; 
and 
‘‘(B) provides that the period of obligated 
service will be extended so that the aggregate 
amount of service performed will equal the 
amount of service that would be performed 
through a period of full-time service described 
in paragraph (1). 
‘‘(f) APPLICABILITY OF CERTAIN PROVISIONS.—The 
provisions of subpart III of part D of title III shall, except 
as inconsistent with this section, apply to the program es-
tablished in this section in the same manner and to the 
same extent as such provisions apply to the National 
Health Service Corps Scholarship Program established in 
such subpart. 
‘‘(g) REPORTS.—Not later than 18 months after the 
date of the enactment of this section, and annually there-
after, the Secretary shall prepare and submit to the Con-
gress a report describing the program carried out under 
this section, including statements regarding—
‘‘(1) the number of enrollees, scholarships, and 
grant recipients; 
‘‘(2) the number of graduates; 
‘‘(3) the amount of scholarship payments made;
‘‘(4) which educational institution the recipients 
attended; 
‘‘(5) the number and placement location of the 
scholarship recipients at health care facilities with a 
critical shortage of allied health professionals; 
‘‘(6) the default rate and actions required; 
‘‘(7) the amount of outstanding default funds of 
the scholarship program; 
‘‘(8) to the extent that it can be determined, 
the reason for the default; 
‘‘(9) the demographics of the individuals par-
ticipating in the scholarship program; and 
‘‘(10) an evaluation of the overall costs and 
benefits of the program. 
‘‘SEC. 780C. ALLIED HEALTH PROFESSIONS EDUCATION, 
PRACTICE, AND RETENTION GRANTS. 
‘‘(a) EDUCATION PRIORITY AREAS.—The Secretary 
may award grants to, and enter into contracts with, eligi-
ble entities for—
‘‘(1) expanding the enrollment in allied health 
professions programs; 
‘‘(2) developing and implementing internship 
and residency programs to encourage mentoring and 
the development of specialties and training for new 
or emerging public health needs;
planation of why each such grant or contract will meet 
the priority need of the workforce. 
‘‘(f) ELIGIBLE ENTITY.—For purposes of this sec-
tion, the term ‘eligible entity’ includes a school of allied 
health, a health care facility, or a partnership of such a 
school and a facility. 
‘‘SEC. 780D. COMPREHENSIVE GERIATRIC EDUCATION. 
‘‘(a) PROGRAM AUTHORIZED.—The Secretary may 
award grants to eligible entities to develop and implement, 
in coordination with programs under section 753, pro-
grams and initiatives to train and educate allied health 
professionals in providing geriatric care for the elderly. 
‘‘(b) USE OF FUNDS.—An eligible entity that receives 
a grant under subsection (a) shall use funds under such 
grant to—
‘‘(1) provide training to allied health profes-
sionals who will provide geriatric care for the elderly; 
‘‘(2) disseminate curricula relating to the treat-
ment of the health problems of elderly individuals; 
‘‘(3) train allied health professions faculty 
members in geriatrics; or 
‘‘(4) provide continuing education to allied 
health professionals who provide geriatric care. 
‘‘(c) APPLICATION.—An eligible entity desiring a 
grant under subsection (a) shall submit an application to
the Secretary at such time, in such manner, and con-
taining such information as the Secretary may reasonably 
require. 
‘‘(d) ELIGIBLE ENTITY.—For purposes of this sec-
tion, the term ‘eligible entity’ includes a school of allied 
health, a health care facility, or a partnership of such a 
program and facility. 
‘‘SEC. 780E. ALLIED HEALTH PROFESSIONS FACULTY LOAN 
PROGRAM. 
‘‘(a) 
ESTABLISHMENT.—The 
Secretary, 
acting 
through the Administrator of the Health Resources and 
Services Administration, may enter into an agreement 
with any institution of higher education for the establish-
ment and operation of a student loan fund in accordance 
with this section, to increase the number of qualified allied 
health professions faculty. 
‘‘(b) AGREEMENTS.—Each agreement entered into 
under this section shall—
‘‘(1) provide for the establishment of a student 
loan fund by the institution of higher education in-
volved; 
‘‘(2) provide for deposit in the fund of—
‘‘(A) the Federal capital contributions to 
the fund;
‘‘(B) an amount equal to not less than 
one-ninth of such Federal capital contributions, 
contributed by such institution; 
‘‘(C) collections of principal and interest 
on loans made from the fund; and 
‘‘(D) any other earnings of the fund; 
‘‘(3) provide that the fund will be used only for 
loans to students of the institution in accordance 
with subsection (c) and for costs of collection of such 
loans and interest thereon; 
‘‘(4) provide that loans may be made from such 
fund only to students pursuing a full-time course of 
study or, at the discretion of the Secretary, a part-
time course of study in an allied health profession; 
and 
‘‘(5) contain such other provisions as are nec-
essary to protect the financial interests of the 
United States. 
‘‘(c) LOAN PROVISIONS.—Loans from any student 
loan fund established by an institution of higher education 
pursuant to an agreement under this section shall be made 
to an individual on such terms and conditions as the insti-
tution may determine, except that—
‘‘(1) such terms and conditions are subject to 
any conditions, limitations, and requirements pre-
scribed by the Secretary; 
‘‘(2) in the case of any individual, the total of 
the loans for any academic year made by institutions 
of higher education from loan funds established pur-
suant to agreements under this section may not ex-
ceed $30,000, plus any amount determined by the 
Secretary on an annual basis to reflect inflation; 
‘‘(3) an amount up to 85 percent of any such 
loan (plus interest thereon) shall be canceled by the 
institution as follows: 
‘‘(A) upon completion by the individual of 
each of the first, second, and third year of full-
time employment, required by the loan agree-
ment entered into under this section, as a fac-
ulty member in a school of allied health, the in-
stitution shall cancel 20 percent of the principle 
of, and the interest on, the amount of such loan 
unpaid on the first day of such employment; 
and 
‘‘(B) upon completion by the individual of 
the fourth year of full-time employment, re-
quired by the loan agreement entered into 
under this section, as a faculty member in a
school of allied health, the institution shall can-
cel 25 percent of the principle of, and the inter-
est on, the amount of such loan unpaid on the 
first day of such employment; 
‘‘(4) such a loan may be used to pay the cost 
of tuition, fees, books, laboratory expenses, and 
other reasonable education expenses; 
‘‘(5) such a loan shall be repayable in equal or 
graduated periodic installments (with the right of 
the borrower to accelerate repayment) over the 10-
year period that begins 9 months after the individual 
ceases to pursue a course of study at a school of al-
lied health; and 
‘‘(6) such a loan shall—
‘‘(A) beginning on the date that is 3 
months after the individual ceases to pursue a 
course of study at a school of allied health, bear 
interest on the unpaid balance of the loan at 
the rate of 3 percent per annum; or 
‘‘(B) subject to subsection (e), if the insti-
tution determines that the individual will not 
complete such course of study or serve as a fac-
ulty member as required under the loan agree-
ment under this section, bear interest on the
unpaid balance of the loan at the prevailing 
market rate. 
‘‘(d) PAYMENT OF PROPORTIONATE SHARE.—Where 
all or any part of a loan, or interest, is canceled under 
this section, the Secretary shall pay to the institution of 
higher education an amount equal to the school’s propor-
tionate share of the canceled portion, as determined by 
the Secretary. 
‘‘(e) REVIEW BY SECRETARY.—At the request of the 
individual involved, the Secretary may review any deter-
mination by an institution of higher education under sub-
section (c)(6)(B). 
‘‘(f) PUBLICATION.—The Secretary shall publish in 
the Federal Register the name of each institution of high-
er education participating in the allied health professions 
faculty loan program under this section. 
‘‘SEC. 780F. GENERAL PROVISIONS. 
‘‘(a) DEFINITION.—For purposes of this part: 
‘‘(1) The term ‘health care facility’ has the 
meaning given to that term under section 801 and 
includes any health care facility of the Veterans 
Health Administration. 
‘‘(2) The term ‘institution of higher education’ 
has the meaning given to that term in section 101 
of the Higher Education Act of 1965.
‘‘(b) AUTHORIZATION
OF
APPROPRIATIONS.—To 
carry out this part, there is authorized to be appropriated 
$28,000,000 for each of fiscal years 2005 through 2009.’’. 
SEC. 5. COUNCIL ON HEALTH PROFESSION EDUCATION. 
(a) ESTABLISHMENT.—The Secretary shall establish 
in the Health Resources and Service Administration a 
council, to be known as the ‘‘Council on Health Profession 
Education’’. 
(b) DUTIES.—The Council on Health Profession 
Education shall monitor the status of the allied health pro-
fessions workforce and make annual reports to the Con-
gress. 
SEC. 6. REPORTS BY GENERAL ACCOUNTING OFFICE. 
(a) NATIONAL VARIATIONS.—Not later than 4 years 
after the date of the enactment of this Act, the Comp-
troller General of the United States shall—
(1) conduct a survey to determine national vari-
ations in the allied health professions at hospitals, 
nursing homes, home health agencies, ambulatory 
rehabilitation services, and other health care pro-
viders; and 
(2) submit a report to the Congress on the re-
sults of such survey, including findings and rec-
ommendations on Federal remedies to ease allied 
health profession shortages.
(b) ALLIED HEALTH PROGRAMS.—Not later than 4 
years after the date of the enactment of this Act, the 
Comptroller General of the United States shall—
(1) conduct an evaluation of whether the effec-
tiveness of programs authorized under this Act, in-
cluding whether such programs have demonstrably 
increased the number of applicants to schools of al-
lied health; and 
(2) submit a report to the Congress on the re-
sults of such evaluation. 
SEC. 7. CENTERS OF EXCELLENCE. 
Subparagraph (A) of section 736(g)(1) of the Public 
Health Service Act (42 U.S.C. 293(g)(1)) is amended by 
inserting ‘‘a school of allied health,’’ after ‘‘a school of 
pharmacy,’’.
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