Delaware launches healthcare loan repayment program

DOVER — After years of workshops among health care industry leaders, the Delaware Department of Health and Human Services has officially launched a loan repayment program for primary care physicians.

the Health Care Provider Loan Repayment Program allows physicians, nurse practitioners, midwives and physical assistants to receive up to $50,000 per year in loan repayment. In exchange, the medical professional must work in Delaware for at least two years.

For practitioners interested in working in one of Delaware’s hospital systems, the facility must agree to provide 50% compensation for reimbursement. Health care systems wishing to participate must accept Medicaid and Medicare.

“We are really excited about Delaware and its hospital systems because this program will really put us at the top of the map when it comes to attracting talent,” said Wayne Smith, president of the Delaware Healthcare Association, who represents the state. hospitals. “We cannot thank our colleagues who have worked to develop this program, as well as the legislative and state sponsors for bringing it to fruition. It’s a new day for primary care practices in Delaware because of their work.

Applications for the first cohort are open through June 1, and DHSS is planning for at least three cohorts, over a rolling six-week period. The program is funded with at least $2 million, between an allocation from state lawmakers and a one-time donation from the Highmark Blue Cross Blue Shield Delaware.

The program has enough funding for at least 20 providers, and the state has the ability to provide loan repayment each year the provider works in Delaware. Depending on the program’s design, a provider could receive up to $200,000 in full loan repayment, if the state approves its annual application for up to four years.

Governor John Carney has proposed an additional $1 million for the program in fiscal year 2023, demonstrating his commitment to seeing the program continue beyond the initial year.

In 2020, the Delaware Healthcare Association and the Delaware Health Care Commission began looking for ways to recruit and retain healthcare providers. In 2018, there were 815 active primary care physicians in Delaware, according to a 2018 study commissioned by DHSS.

Other results show doctors in Kent County were 60% more likely to be active in the field five years from now, compared to 78% in Sussex County and 70% in New Castle County. To complicate matters further, Delaware is one of four states in the country that does not have its own medical school, which further limits the talent pool.

Rep. David Bentz (D-Christiana) sponsored House Bill 48 which created the Health Care Provider Loan Repayment Programdrawing attention to the statewide doctor shortage and building support for it to be enacted.

“When it comes to health care, Delawares deserve to be treated by highly trained professionals at medical facilities across the state,” Bentz said in a statement. “With this law, we can work to recruit and retain the best primary care physicians.”

the Health Care Provider Loan Repayment Program makes Delaware one of the most competitive countries when it comes to loan repayment for medical providers. By comparison, 14 other states and Washington, DC, offer similar programs for future healthcare workers — but Delaware is now among the few that offer a greater incentive to practice longer in the state.

For example, Massachusetts offers $50,000 reimbursed to health care providers, based on a two-year contract. However, the amount of the scholarship depends on the medicine practiced, as the program is open to dental and mental health professionals. Missouri is offering up to $2,000 to nursing students who agree to work in a designated health care shortage area after graduation.

The average medical school debt is $201,490, according to a NerdWallet report earlier this year. Nursing school debt ranges from $19,928 for an associate degree to $47,321 for a master’s degree.

“It’s clear that we need to find ways to attract more primary care providers to practice in Delaware, and this state-sponsored program is a strategic way to do that,” said the DHSS Secretary, Molly Magarik, in a statement. “We are grateful to Governor Carney and the General Assembly for their support of [this program].”

Delaware has a partnership, called Delaware Institute of Medical Education and Research (DIMER), with the Philadelphia College of Osteopathic Medicine and Sidney Kimmel Medical College at Thomas Jefferson, where 120 seats are reserved for First State students. To encourage many of these students to return to Delaware, the The Health Care Provider Loan Repayment Program prioritized applications from DIMER graduates.

In the last years, Delaware healthcare systems like Bayhealth have launched a residency program to attract new talent to their offices. TidalHealth, which has a hospital in Seaford, is preparing to launch its own internal medicine residency program, while Beebe Healthcare is preparing several areas of its own curriculum after long running a nursing school.

Beebe Healthcare President and CEO David Tam told the Delaware Business Times that over the past two years, the Sussex County Health System has hired nearly 100 providers and is still studying what works the best. best to bring the best professionals to Delaware.

“We are seeing people excited to move to Sussex County and work for an independent, not-for-profit community health system, and with the establishment of the R. Randall Rollins Center for Medical Education, continuing education and family residence will have place right here in Sussex County,” Tam said. “Beebe Healthcare is excited about the [loan repayment] start of the program as it can be another incentive for doctors to come to rural areas like Sussex County. “