§ 254n.
(a)
Application for release of obligations; conditions
The Secretary shall, to the extent permitted by, and consistent with, the requirements of applicable State law, release an individual from all or part of his service obligation under
section 254m(a) of this title or under section 234
1
See References in Text note below.
of this title (as in effect on
September 30, 1977) if the individual applies for such a release under this section and enters into a written agreement with the Secretary under which the individual agrees to engage for a period equal to the remaining period of his service obligation in the full-time private clinical practice (including service as a salaried employee in an entity directly providing health services) of his health profession—
(1)
in the case of an individual who received a scholarship under the Scholarship Program or a loan repayment under the Loan Repayment Program and who is performing obligated service as a member of the Corps in a health professional shortage area on the date of his application for such a release, in the health professional shortage area in which such individual is serving on such date or in the case of an individual for whom a loan payment was made under the Loan Repayment Program and who is performing obligated service as a member of the Corps in a health professional shortage area on the date of the application of the individual for such a release, in the health professional shortage area selected by the Secretary; or
(2)
in the case of any other individual, in a health professional shortage area (designated under
section 254e of this title) selected by the Secretary.
(f)
Malpractice insurance
The Secretary may, out of appropriations authorized under
section 254k of this title, pay to individuals participating in private practice under this section the cost of such individual’s malpractice insurance and the lesser of—
(1)
(A)
$10,000 in the first year of obligated service;
(B)
$7,500 in the second year of obligated service;
(C)
$5,000 in the third year of obligated service; and
(D)
$2,500 in the fourth year of obligated service; or
(2)
an amount determined by subtracting such individual’s net income before taxes from the income the individual would have received as a member of the Corps for each such year of obligated service.
([July 1, 1944, ch. 373], title III, § 338D, formerly title VII, § 753, as added [Pub. L. 94–484, title IV, § 408(b)(1)], Oct. 12, 1976, [90 Stat. 2285]; amended [Pub. L. 96–538, title IV, § 403], Dec. 17, 1980, [94 Stat. 3192]; renumbered § 338C and amended [Pub. L. 97–35, title XXVII, § 2709(a)], (d), Aug. 13, 1981, [95 Stat. 908], 910; renumbered § 338D and amended [Pub. L. 100–177, title II, § 201(2)], title III, § 307, Dec. 1, 1987, [101 Stat. 992], 1005; [Pub. L. 101–597, title IV, § 401(b)[(a)]], Nov. 16, 1990, [104 Stat. 3035]; [Pub. L. 107–251, title III, § 312], Oct. 26, 2002, [116 Stat. 1650].)