Texas Physician Education Loan Repayment Program

updated 08.12.10

The 81st Texas Legislature passed a bill creating a new physician loan repayment program that will pay up to $160,000 to physicians who agree to practice for four years in primary care Health Professional Shortage Areas (HPSAs), the areas of Texas where the doctor-to-patient ratio is less than 1:3,500.

The updated Physician Education Loan Repayment Program (PELRP) holds the potential to drastically increase access to care for Texans by bringing as many as 225 physicians to the areas that need them most. The latest figures from DSHS identify 118 whole-county primary care HPSAs and 46 partial-county HPSAs.

The Texas Higher Education Coordinating Board approved the final rules for the PELRP in October 2009. This page will be updated as the program is implemented. Please note that official information about the program can be accessed through the Texas Higher Education Coordinating Board or the Texas Department of State Health Services. See the Resources section below for helpful links to TAFP partners.

General information

Physicians who agree to practice for four consecutive years in a primary care Health Professional Shortage Area and see patients enrolled in Medicaid and the Children’s Health Insurance Program will be eligible for up to $160,000 for educational loan repayment: $25,000 for their first year of service, $35,000 for the second, $45,000 for the third and $55,000 for the fourth. THECB sends loan repayments to physicians’ lenders at the end of each year of service. For those with less than $160,000 in debt, THECB will pay a proportional amount each year over the four-year period.

Only educational loans accrued during undergraduate, graduate or medical school years are eligible for repayment. The legislation does not limit physician applicants by specialty, though officials are specifically targeting primary care. It also does not restrict applicants to new physicians.

As many as 225 physicians may qualify for loan repayment starting in fiscal year 2011, with up to 225 additional physicians brought on each year for a workforce of 900 by fiscal year 2014. THECB and DSHS will administer the program. DSHS will do outreach and marketing, develop and publish the online application, and review and rank applicants based on criteria established in the final rules. Once DSHS selects the physicians, THECB will verify loan balances and distribute the funds directly to loan institutions after each year of a physician’s service.

How to apply

The first cohort of 120 physicians began their period of service in July 2010. Because the program has funding for up to 225 physicians per year as authorized by Texas law, enrollment will stay open until funding for the year is depleted. Applications from primary care physicians will be accepted and processed quarterly, and applications from subspecialist physicians will be accepted and processed as they are received and completed. To be considered for the program, primary care and subspecialty physicians must be practicing in a designated HPSA. Subspecialty physicians also must provide evidence that there is a need for their subspecialties.

Important dates

Guidelines

To be eligible to receive funds a physician must:

• Submit a completed application.
• Be a U.S. citizen or Legal Permanent Resident and, at the time of application, hold a Full Physician License from the Texas Medical Board with no restrictions.
• Not be currently fulfilling another obligation to provide medical services as part of another scholarship or loan agreement.
• Be board-certified or, during years 1-3, be eligible to take the exam for board certification.

To receive payment a physician must:

• Have completed one, two, three or four consecutive years of service in a primary care Health Professional Shortage Area. NEW: Search HPSAs by street address here.
• Have provided direct patient care to Medicaid and CHIP enrollees.
• Be board-certified by year 4.

Job search assistance

Texas Association of Community Health Centers — www.tachc.org/careers/opportunities.asp
TACHC member facilities can post vacancies. Job seekers search for free.

National Rural Recruitment and Retention Network and Texas Department of Rural Affairs — www.3rnet.org
3RNnet allows member facilities to post vacancies. Job seekers search for free.

Texas Health Match, an East Texas Area Health Education product — www.txhealthmatch.com
Facilities and job seekers can post vacancies and search jobs for free.

Resources

• Fill out a PELRP online application. Go to www.dshs.state.tx.us/chpr/PELRP.shtm, scroll to the bottom of the page and click on PELRP Application.
• View the latest list of primary care Health Professional Shortage Areas on the DSHS website or search potential HPSA practice sites by street address on the U.S. Department of Health and Human Services Health Resources and Services Administration website.
• Read an article on the new program in the fall 2009 edition of TEXAS FAMILY PHYSICIAN magazine.
• Go to the Texas Higher Education Coordinating Board website, www.thecb.state.tx.us.
• Go to the DSHS Primary Care Office website, www.TXLRP.org, call (512) 458-7518, or e-mail TexasPCO@dshs.state.tx.us.