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National Health Service Corps

			Related Resources National Health Service Corps AAMC Documents AAMC NHSC Expansion Recommendation (PDF, 1 page) AAMC Statement on the Physician Workforce (PDF, 9 pages) Joint AAMC and AACOM Statement on NHSC Scholarship Taxation (6/23/99) Medical Educational Costs and Student Debt: A Working Group Report to the AAMC Governance (PDF, 17 pages)

Current Status

The President's FY 2008 budget proposes $116 million for the National Health Service Corps (NHSC), a $9 million (7.2 percent) decrease below FY 2007. This includes $31 million for the NHSC Field budget (recruitment, retention, and site development), a $9 million (22.5 percent) decrease below FY 2007, and $85 million for the NHSC Recruitment budget (loan repayments and scholarships), which is level with FY 2007.

On February 14, 2007, the President signed a year-long FY 2007 funding resolution (P.L. 110-5) that level funds the NHSC at $125 million, the same as in FY 2006. This includes $40 million for the NHSC Field budget and $85 million for the NHSC Recruitment budget.

The NHSC was last reauthorized under the "Health Care Safety Net Amendments of 2002" (P.L. 107-251). Authorization of the NHSC expired after FY 2006. During the 2002 reauthorization, 10 percent of the NHSC appropriation was obligated for scholarships to new participants; or scholarships or loan repayments to individuals from disadvantaged backgrounds. An additional 10 percent of the NHSC recruitment appropriation was obligated " for both scholarships under the Scholarship Program … and loan repayments under the Loan Repayment Program" to first-year nurse practitioners, nurse midwifes, or physician assistants.

On January 11, 2007, Rep. Conyers introduced the "United Sates Physician Shortage Elimination Act of 2007" (H.R. 410), which provides for an additional 1,500 NHSC annual awards to physicians. The bill reauthorizes the NHSC at $300 million for FY 2007 through FY 2011, a $153.75 million (105 percent) increase over the expired FY 2006 NHSC authorization. H.R. 410 also designates $30 million of the NHSC appropriation for physicians.

AAMC Activity

In a June 2006 Statement on the Physician Workforce, the AAMC called for a 1,500 per year increase in NHSC awards to "help meet the need for physicians caring for under-served populations and to help address rising medical student indebtedness." The AAMC estimates this expansion will cost at least $663.6 million over the first 4 years and require an appropriation of at least $400.4 million in the fourth and subsequent years.

Contacts

Matthew Shick, Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 828-0525