BILL NUMBER: S5840

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the public health law, in relation to professional obli-
gations under the physician loan repayment program

 
PURPOSE:

To expand the incentives provided in the DANY Physician Loan Repayment
and Physician Practice Support programs to physicians entering private
practice in underserved areas.

 
SUMMARY OF PROVISIONS:

Section 1: Amends paragraph (c) of subdivision 12 of section 2807-m of
the public health law. An applicant must agree to either: (i) practice
for three years in an underserved area and receive up to forty thousand
dollars for each of the three years, or (ii) practice as a physician
engaged in private practice in an underserved area and receive up to
sixty thousand dollars for each of the three years.
              

Section 2: Sets Effective Date.

 
JUSTIFICATION:

The Doctors Across New York (DANY) Physician Loan Repayment and Physi-
cian Practice Support programs are designed to recruit and retain physi-
cians in medically underserved areas by providing financial incentives.
Through this program, eligible physicians receive student loan repayment
in exchange for a three-year commitment to practicing in an underserved
community. The current funding cycle offers up to $40,000 annually for
three years to physicians who agree to serve in these areas.

Under existing state law, applicants must be primary care physicians or
specialists and have an employment contract with a qualifying healthcare
facility. These facilities include general hospitals, diagnostic and
treatment centers (D&TCs), and nursing homes licensed by the New York
State Department of Health (NYSDOH), as well as facilities certified-but
not operated-by the New York State Office of Mental Health (OMH). While
hospitals play a critical role in providing care to underserved popu-
lations, there are also significant benefits to patients receiving
treatment from physicians in private practice.

To address this need, New York State must extend incentives to primary
care physicians who choose to work in private practice. This legislation
proposes expanding the DANY program by offering up to $60,000 per year
for three years to physicians in underserved areas through private prac-
tice. Since private practice physicians typically earn lower salaries
than their hospital-employed counterparts, this increase is essential to
ensure competitive compensation and encourage physicians to serve in
these critical community settings.

 
LEGISLATIVE HISTORY:

Senate

2023: S6882, Referred to Health
2024: S6882, Referred to Health

Assembly

2023: A7942, Referred to Health

2024: A7942, Referred to Health

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the thirty-first of March next succeeding
the date upon which it shall have become a law.