Authority

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TITLE II—RURAL HEALTH
Subtitle A—Rural Health Care
Services Outreach, Rural Health
Network
Development,
and
Small Health Care Provider
Quality
Improvement
Grant
Programs

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SEC. 201. GRANT PROGRAMS.

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Section 330A of the Public Health Service Act (42

10 U.S.C. 254c) is amended to read as follows:
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‘‘SEC. 330A. RURAL HEALTH CARE SERVICES OUTREACH,

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RURAL HEALTH NETWORK DEVELOPMENT,

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AND SMALL HEALTH CARE PROVIDER QUAL-

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ITY IMPROVEMENT GRANT PROGRAMS.

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‘‘(a) PURPOSE.—The purpose of this section is to

16 provide grants for expanded delivery of health care serv17 ices in rural areas, for the planning and implementation
18 of integrated health care networks in rural areas, and for
19 the planning and implementation of small health care pro20 vider quality improvement activities.

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‘‘(b) DEFINITIONS.—
‘‘(1) DIRECTOR.—The term ‘Director’ means
the Director specified in subsection (d).
‘‘(2) FEDERALLY
RURAL

HEALTH

QUALIFIED HEALTH CENTER;

CLINIC.—The

terms ‘Federally

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qualified health center’ and ‘rural health clinic’ have

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the meanings given the terms in section 1861(aa) of

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the Social Security Act (42 U.S.C. 1395x(aa)).

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‘‘(3)

HEALTH

PROFESSIONAL

SHORTAGE

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AREA.—The

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means a health professional shortage area des-

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ignated under section 332.

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‘‘(4) MEDICALLY

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term ‘health professional shortage area’

UNDERSERVED COMMUNITY.—

The term ‘medically underserved community’ has the
meaning given the term in section 799B.

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‘‘(5)

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LATION.—The

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lation’ has the meaning given the term in section

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330(b)(3).

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‘‘(c) PROGRAM.—The Secretary shall establish, under

MEDICALLY

UNDERSERVED

POPU-

term ‘medically underserved popu-

16 section 301, a small health care provider quality improve17 ment grant program.
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‘‘(d) ADMINISTRATION.—

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‘‘(1) PROGRAMS.—The rural health care serv-

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ices outreach, rural health network development, and

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small health care provider quality improvement

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grant programs established under section 301 shall

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be administered by the Director of the Office of

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Rural Health Policy of the Health Resources and

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Services Administration, in consultation with State

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offices of rural health or other appropriate State

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government entities.

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‘‘(2) GRANTS.—

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‘‘(A) IN

GENERAL.—In

carrying out the

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programs described in paragraph (1), the Di-

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rector may award grants under subsections (e),

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(f), and (g) to expand access to, coordinate, and

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improve the quality of essential health care

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services, and enhance the delivery of health

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care, in rural areas.

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‘‘(B) TYPES

OF GRANTS.—The

Director

may award the grants—

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‘‘(i) to promote expanded delivery of

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health care services in rural areas under

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subsection (e);

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‘‘(ii) to provide for the planning and

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implementation of integrated health care

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networks in rural areas under subsection

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(f); and

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‘‘(iii) to provide for the planning and

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implementation of small health care pro-

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vider quality improvement activities under

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subsection (g).

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‘‘(e) RURAL HEALTH CARE SERVICES OUTREACH

25 GRANTS.—

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‘‘(1) GRANTS.—The Director may award grants

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to eligible entities to promote rural health care serv-

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ices outreach by expanding the delivery of health

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care services to include new and enhanced services

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in rural areas. The Director may award the grants

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for periods of not more than 3 years.

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‘‘(2) ELIGIBILITY.—To be eligible to receive a

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grant under this subsection for a project, an

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entity—

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‘‘(A) shall be a rural public or rural nonprofit private entity;
‘‘(B) shall represent a consortium composed of members—
‘‘(i) that include 3 or more health
care providers; and
‘‘(ii) that may be nonprofit or for-

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profit entities; and

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‘‘(C) shall not previously have received a

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grant under this subsection for the same or a

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similar project, unless the entity is proposing to

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expand the scope of the project or the area that

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will be served through the project.

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‘‘(3) APPLICATIONS.—To be eligible to receive a

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grant under this subsection, an eligible entity, in

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consultation with the appropriate State office of

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rural health or another appropriate State entity,

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shall prepare and submit to the Secretary an appli-

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cation, at such time, in such manner, and containing

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such information as the Secretary may require,

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including—

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‘‘(A) a description of the project that the

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eligible entity will carry out using the funds

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provided under the grant;

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‘‘(B) a description of the manner in which

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the project funded under the grant will meet

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the health care needs of rural underserved pop-

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ulations in the local community or region to be

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served;

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‘‘(C) a description of how the local commu-

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nity or region to be served will be involved in

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the development and ongoing operations of the

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project;

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‘‘(D) a plan for sustaining the project after
Federal support for the project has ended;

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‘‘(E) a description of how the project will
be evaluated; and

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‘‘(F) other such information as the Secretary determines to be appropriate.
‘‘(f) RURAL HEALTH NETWORK DEVELOPMENT

25 GRANTS.—

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‘‘(1) GRANTS.—
‘‘(A) IN

GENERAL.—The

Director may

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award rural health network development grants

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to eligible entities to promote, through planning

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and implementation, the development of inte-

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grated health care networks that have combined

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the functions of the entities participating in the

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networks in order to—

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‘‘(i) achieve efficiencies;

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‘‘(ii) expand access to, coordinate, and

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improve the quality of essential health care

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services; and

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‘‘(iii) strengthen the rural health care

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system as a whole.

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‘‘(B) GRANT

PERIODS.—The

Director may

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award such a rural health network development

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grant for implementation activities for a period

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of 3 years. The Director may also award such

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a rural health network development grant for

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planning activities for a period of 1 year, to as-

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sist in the development of an integrated health

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care network, if the proposed participants in

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the network do not have a history of collabo-

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rative efforts and a 3-year grant would be inap-

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propriate.

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‘‘(2) ELIGIBILITY.—To be eligible to receive a
grant under this subsection, an entity—
‘‘(A) shall be a rural public or rural nonprofit private entity;
‘‘(B) shall represent a network composed
of participants—

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‘‘(i) that include 3 or more health
care providers; and

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‘‘(ii) that may be nonprofit or for-

*101602.020*

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profit entities; and

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‘‘(C) shall not previously have received a

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grant under this subsection (other than a grant

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for planning activities) for the same or a simi-

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lar project.

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‘‘(3) APPLICATIONS.—To be eligible to receive a

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grant under this subsection, an eligible entity, in

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consultation with the appropriate State office of

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rural health or another appropriate State entity,

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shall prepare and submit to the Secretary an appli-

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cation, at such time, in such manner, and containing

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such information as the Secretary may require,

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including—

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‘‘(A) a description of the project that the

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eligible entity will carry out using the funds

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provided under the grant;

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‘‘(B) an explanation of the reasons why

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Federal assistance is required to carry out the

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project;

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‘‘(C) a description of—

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‘‘(i) the history of collaborative activi-

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ties carried out by the participants in the

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network;

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‘‘(ii) the degree to which the partici-

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pants are ready to integrate their func-

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tions; and

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‘‘(iii) how the local community or re-

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gion to be served will benefit from and be

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involved in the activities carried out by the

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network;

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‘‘(D) a description of how the local com-

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munity or region to be served will experience in-

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creased access to quality health care services

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across the continuum of care as a result of the

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integration activities carried out by the net-

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work;

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‘‘(E) a plan for sustaining the project after
Federal support for the project has ended;
‘‘(F) a description of how the project will
be evaluated; and

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‘‘(G) other such information as the Sec-

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retary determines to be appropriate.

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‘‘(g) SMALL HEALTH CARE PROVIDER QUALITY IMPROVEMENT

GRANTS.—

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‘‘(1) GRANTS.—The Director may award grants

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to provide for the planning and implementation of

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small health care provider quality improvement ac-

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tivities. The Director may award the grants for peri-

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ods of 1 to 3 years.

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‘‘(2) ELIGIBILITY.—To be eligible for a grant
under this subsection, an entity—

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‘‘(A)(i) shall be a rural public or rural non-

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profit private health care provider or provider

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of health care services, such as a critical access

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hospital or a rural health clinic; or

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‘‘(ii) shall be another rural provider or net-

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work of small rural providers identified by the

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Secretary as a key source of local care; and

*101602.020*

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‘‘(B) shall not previously have received a

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grant under this subsection for the same or a

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similar project.

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‘‘(3) APPLICATIONS.—To be eligible to receive a

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grant under this subsection, an eligible entity, in

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consultation with the appropriate State office of

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rural health or another appropriate State entity

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shall prepare and submit to the Secretary an appli-

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cation, at such time, in such manner, and containing

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such information as the Secretary may require,

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including—

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‘‘(A) a description of the project that the

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eligible entity will carry out using the funds

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provided under the grant;

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‘‘(B) an explanation of the reasons why

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Federal assistance is required to carry out the

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project;

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‘‘(C) a description of the manner in which

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the project funded under the grant will assure

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continuous quality improvement in the provision

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of services by the entity;

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‘‘(D) a description of how the local com-

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munity or region to be served will experience in-

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creased access to quality health care services

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across the continuum of care as a result of the

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activities carried out by the entity;

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*101602.020*

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‘‘(E) a plan for sustaining the project after
Federal support for the project has ended;
‘‘(F) a description of how the project will
be evaluated; and
‘‘(G) other such information as the Secretary determines to be appropriate.

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‘‘(4) EXPENDITURES

FOR SMALL HEALTH CARE

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PROVIDER

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awarding a grant under this subsection, the Director

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shall ensure that the funds made available through

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the grant will be used to provide services to resi-

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dents of rural areas. The Director shall award not

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less than 50 percent of the funds made available

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under this subsection to providers located in and

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serving rural areas.

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QUALITY

IMPROVEMENT

GRANTS.—In

‘‘(h) GENERAL REQUIREMENTS.—
‘‘(1) PROHIBITED

USES OF FUNDS.—An

entity

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that receives a grant under this section may not use

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funds provided through the grant—

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‘‘(A) to build or acquire real property; or

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‘‘(B) for construction.

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‘‘(2) COORDINATION

WITH OTHER AGENCIES.—

*101602.020*

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The Secretary shall coordinate activities carried out

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under grant programs described in this section, to

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the extent practicable, with Federal and State agen-

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cies and nonprofit organizations that are operating

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similar grant programs, to maximize the effect of

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public dollars in funding meritorious proposals.

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‘‘(3) PREFERENCE.—In awarding grants under

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this section, the Secretary shall give preference to

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entities that—

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‘‘(A) are located in health professional

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shortage areas or medically underserved com-

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munities, or serve medically underserved popu-

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lations; or

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‘‘(B) propose to develop projects with a

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focus on primary care, and wellness and preven-

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tion strategies.

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‘‘(i) REPORT.—Not later than September 30, 2005,

9 the Secretary shall prepare and submit to the appropriate
10 committees of Congress a report on the progress and ac11 complishments of the grant programs described in sub12 sections (e), (f), and (g).
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‘‘(j) AUTHORIZATION

OF

APPROPRIATIONS.—There

14 are authorized to be appropriated to carry out this section
15 $40,000,000 for fiscal year 2002, and such sums as may
16 be necessary for each of fiscal years 2003 through 2006.’’.

Subtitle B—Telehealth Grant
Consolidation

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SEC. 211. SHORT TITLE.

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This subtitle may be cited as the ‘‘Telehealth Grant

*101602.020*

21 Consolidation Act of 2002’’.

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