Rural Health Workforce Recruitment and Retention Act
The Rural Health Workforce Recruitment and Retention Act strengthens access to care in underserved areas by incentivizing health professionals to practice and remain in rural communities. Through tax credits, loan repayment, training pipelines, and relocation support, the Act addresses persistent workforce shortages. Ongoing reporting ensures programs align with community needs.
Key Provisions
Rural Provider Tax Credit Program: Offers refundable income tax credits to licensed health care professionals practicing full-time in rural shortage areas.
State Loan Repayment Expansion: Increases funding and eligibility for state loan repayment programs tied to rural service obligations.
Rural Residency and Clinical Rotation Incentives: Provides grants to medical schools and teaching hospitals for rural-focused residency tracks and student placements.
Relocation and Housing Assistance Fund: Offers stipends or grants to offset relocation and housing costs for providers committing to rural service.
Workforce Tracking and Outcomes Reporting: Requires annual reporting on rural health workforce needs, placements, and retention outcomes.
Model Language
Section 1. Short Title. This Act shall be known and may be cited as the “Rural Health Workforce Recruitment and Retention Act.”
Section 2. Purpose. The purpose of this Act is to expand access to health care in rural areas by attracting and retaining qualified health care providers through financial and training incentives.
Section 3. Definitions.
(a) “Rural area” means a geographic area designated as rural or medically underserved by the U.S. Health Resources and Services Administration (HRSA) or the state health department.
(b) “Eligible provider” means a licensed physician, nurse practitioner, physician assistant, nurse, behavioral health provider, or dentist practicing in a rural area.
(c) “Department” means the state agency responsible for health or workforce development.
Section 4. Rural Provider Tax Credit Program.
(a) Eligible providers practicing full-time in rural areas may claim a refundable income tax credit of up to $5,000 annually.
(b) Providers must commit to at least 12 months of continuous practice to qualify.
(c) The Department shall verify practice location and eligibility.
Section 5. State Loan Repayment Expansion.
(a) The Department shall expand the state loan repayment program to: (1) Increase maximum annual repayment amounts; (2) Include part-time providers practicing at least 20 hours per week; (3) Extend eligibility to additional provider types as determined by need.
(b) Priority shall be given to providers in designated health professional shortage areas (HPSAs).
Section 6. Rural Residency and Clinical Rotation Incentives.
(a) The Department shall provide grants to medical schools, nursing programs, and teaching hospitals that: (1) Establish or expand rural residency training programs; (2) Develop rural preceptorships and clinical rotation sites; (3) Partner with rural hospitals and clinics.
(b) Funds may be used for stipends, housing, faculty, and infrastructure.
Section 7. Relocation and Housing Assistance Fund.
(a) Eligible providers may apply for a relocation assistance grant of up to $10,000 for: (1) Moving expenses; (2) Temporary housing; (3) Home purchase support.
(b) Recipients must commit to two years of rural practice.
Section 8. Workforce Tracking and Outcome Reporting.
(a) The Department shall publish an annual report on: (1) Rural workforce vacancies and needs; (2) Utilization of tax credit and repayment programs; (3) Retention and turnover rates.
(b) Data shall be used to inform future policy and funding decisions.
Section 9. Severability. If any provision of this Act is held invalid, the remainder shall remain in full force and effect.
Section 10. Effective Date. This Act shall take effect on January 1 of the year following its enactment.