‘‘(b) ELIGIBILITY.— 
‘‘(1) APPLICATION.—To be eligible to partici-
pate in the Loan Program, a health care provider 
shall submit to a loan originator center an applica-
tion that demonstrates the following: 
‘‘(A) STATE LICENSED.—The provider is 
licensed by an appropriate State agency to per-
form the duties of the provider. 
‘‘(B) PARTICIPANT IN THE MEDICARE PRO-
GRAM.—The provider participates under title 
XVIII. 
‘‘(C) USE
OF
LOAN
FUNDS
FOR
INTER-
OPERABLE
HIT
PROJECT.—The loan will be 
used to purchase, implement, or improve health 
information technology and such health infor-
mation technology is interoperable with a 
shared health facility, hospital, or health system 
in the community of the provider. 
‘‘(D) NO DEFAULT ON EXISTING LOANS.— 
The provider is not in default on an existing 
Federal loan. 
‘‘(2) ADMINISTRATION OF APPLICATION.—The 
application shall be submitted in such form, at such 
time, and containing such additional information as 
the Secretary may require.
‘‘(c) DUTIES OF THE SECRETARY.—The Secretary, 
through the Chief Health Informatics Officer of Health 
Information Technology, shall carry out the Loan Pro-
gram. In carrying out the Loan Program, the Secretary 
shall, with respect to loans made under subsection (a)— 
‘‘(1) enter into contracts under subsections (d) 
and (e) for purposes of originating and servicing, re-
spectively, such loans; 
‘‘(2) review requests submitted by a loan origi-
nator center for such loans; 
‘‘(3) transfer loans funds to loan originator cen-
ters; 
‘‘(4) monitor activities performed by loan origi-
nator centers under subsection (d) and loan service 
centers under subsection (e); and 
‘‘(5) monitor the rate at which eligible health 
care providers default on such loans made to such 
providers. 
‘‘(d) ORIGINATION OF LOANS.— 
‘‘(1) FUNDS FOR ORIGINATION OF LOANS.—The 
Secretary shall provide funds, out of funds available 
pursuant to subsection (a), for loans under this sec-
tion through a loan originator center to an eligible 
health care provider.
‘‘(2) CONTRACTS WITH LOAN ORIGINATOR CEN-
TERS.—The Secretary of Health and Human Serv-
ices shall enter into contracts with loan originator 
centers under which the loan originator centers 
shall, with respect to loans under subsection (a)— 
‘‘(A) assess applications submitted under 
subsection (b); 
‘‘(B) originate such loans to eligible pro-
viders in accordance with this section, including 
request loan funds from the Secretary for an el-
igible provider, disburse loan funds to an eligi-
ble provider, and notify the Secretary that such 
funds have been disbursed; 
‘‘(C) obtain from an eligible provider a 
note or evidence of obligation on such a loan 
and provide that such note or evidence shall be 
the property of the Secretary; 
‘‘(D) set forth a schedule for disbursement 
of the proceeds of the loan in installments; and 
‘‘(E) perform administrative functions, as 
determined by the Secretary necessary to the 
origination of loan funds, including monthly ac-
count reconciliation. 
‘‘(e) CONTRACTS WITH LOAN SERVICE CENTERS 
FOR SERVICING LOANS.—The Secretary of Health and
Human Services shall enter into contracts with loan serv-
ice centers under which the loans service centers shall, 
with respect to loan funds disbursed to an eligible health 
care provider— 
‘‘(1) monitor the eligibility status of such pro-
viders to receive such loan funds; 
‘‘(2) submit to such providers bills and collect 
from such providers payments for such loan funds in 
accordance with the applicable repayment plan of 
the provider under subsection (g)(1); 
‘‘(3) conduct initial collection services on delin-
quent payments by such providers for loans under 
this section; and 
‘‘(4) transfer loans in default to a debt collec-
tion system. 
‘‘(f) TERMS AND CONDITIONS OF LOANS.— 
‘‘(1) AMOUNTS OF LOANS.— 
‘‘(A) DETERMINATION OF AMOUNTS.—The 
determination of the amount of a loan made 
under subsection (a) to an eligible health care 
provider shall be calculated, in accordance with 
a methodology specified by the Secretary, based 
on the projected health IT cost and the size of 
the provider (as determined by a method speci-
fied by the Secretary.
‘‘(B) DEFINITION OF PROJECTED HEALTH 
IT COST.—For purposes of this paragraph and 
paragraph (2), the term ‘projected health IT 
cost’ means the cost to the eligible health care 
provider to purchase, implement, or improve the 
health information technology involved in the 
application under subsection (b)(1). 
‘‘(2) LOAN LIMITS.— 
‘‘(A) ESTABLISHMENT
OF
LIMITS.—The 
Secretary shall establish limits on loans under 
the Loan Program, based on categories under 
subparagraph (B). 
‘‘(B) CREATION
OF
LOAN
LIMIT
CAT-
EGORIES.—For purposes of subparagraph (A), 
the Secretary shall create categories of eligible 
health care providers that represent various 
ranges of health IT costs to such providers and 
sizes of such providers. The Secretary shall as-
sign to each category a value that shall be the 
maximum amount for a loan made under the 
Loan Program to an eligible health care pro-
vider whose projected health IT cost and whose 
size correspond with the range of costs and 
sizes represented by such category. 
‘‘(3) INTEREST RATES.—