36-2921 - Arizona Statutes

36-2921. Hospital loan program; residencies; fund; program termination A. The administration shall establish a hospital loan program to fund start-up and ongoing costs for residency programs in accredited hospitals. B. Hospitals receiving loans pursuant to subsection C of this section must partner with Arizona-based accredited allopathic or osteopathic medical schools. Residency programs at hospitals receiving loans pursuant to subsection C of this section may accept residents from in-state or out-of-state public or private medical schools. C. Interest-free loans may be provided in an amount of up to five hundred thousand dollars per year for one hospital per county if the hospital establishes a new residency program of at least six residents or adds a new specialty area to an existing residency program with at least four new residents. D. The administration shall distribute loans in the following order of priority: 1. For new or expanded residency programs in accredited hospitals in counties with a population of less than five hundred thousand persons that submit loan applications on or before September 1, 2007. 2. For new or expanded residency programs in accredited hospitals in any county. E. Repayment of loans shall begin either at the time federal reimbursements for graduate medical education pursuant to title XVIII and title XIX of the social security act begin or five years after the date of the loan, whichever is earlier, and shall be completed no more than ten years after the date of the loan. F. The hospital loan residency fund is established consisting of legislative appropriations and loan repayment monies. The director shall administer the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. G. The program established by this section ends on July 1, 2017 pursuant to section 41-3102.