Rural Health Services Revolving Fund

The Rural Health Services Revolving Fund was created to strengthen rural health care systems and service at the local level. The intent of the legislation was to give the Arkansas Department of Health and Human Services/Division of Health resources to help rural communities retain basic medical services and implement new, innovative approaches to health and health care.

The Rural Health Services Revolving Fund legislation authorizes the Arkansas Department of Health and Human Services/Division of Health Office of Rural Health and Primary Care to administer the funds and provide technical assistance and/or arrange for consultation services to communities needing help in stabilizing necessary and appropriate community based medical and health services.

The Rural Health Services Revolving Fund was designed to expand or enhance the availability of essential health services in rural areas and develop rural health care services. Funds may be use to:

1. establish or retain primary care services;
2. support improvement or transition initiatives of rural hospitals;
3. provide needed emergency medical services;
4. provide non-emergency medical services; and
5. support other efforts to improve the health of the community or the health care system in the community

Applications supporting local community strategic planning efforts will also be considered.

To be eligible to obtain assistance from this program, the following requirements must be met:

1. The applicant's service area must be identified as either a Medically Underserved Area (MUA) or a Health Provider Shortage Area (HPSA).
2. The applicant must be in a community with a population of 15,000 or less.
3. The applicant may not be located in a Metropolitan Statistical Area (MSA).
4. The applicant program, if applicable, must participate in the state Medicaid program or be willing to enroll in the program.
5. If the applicant is a community or organization, they must demonstrate a formal relationship with the nearest appropriate hospital to their community.
6. The applicant must identify the source of their cash match. A 75/25 percent cash match will be observed for communities having undergone a community assessment, and a 50/50 cash match will be observed for those who have not.
7. The applicant must demonstrate broad community support for the application.

Applications from organizations not meeting the eligibility requirements described above will be returned. Arkansas statute does not allow this program to fund salaries, program operating costs or the purchase of equipment or services made prior to the grant award.

Competing applications are initially reviewed by staff for completeness and compliance with application and program guidelines. Applicants meeting all application and program guidelines will be considered eligible. After staff have completed the initial review, applicants may be requested to submit additional information. This information would be needed to clarify the application prior to the competitive application review process.

An Objective Review Committee will evaluate and score each application and make a recommendation for approval or disapproval for funding to the Director of the Arkansas Department of Health.

Emphasis will be focused on proposals that address primary and preventive health care, as well as those proposals that demonstrate:

1. the greatest potential for improving access to medical care without duplicating existing services;
2. formal or informal development of a broad-based community board or group formed to develop and implement the requested award;
3. collaboration with multiple agencies or providers that will lead to the success of the project; and
4. stabilization of necessary services.

Notice of grant cycles will be made well in advance of the call for applications. All interested parties should contact the Office of Rural Health Grants Coordinator to determine the due date for the next funding cycle and to express interest for consideration. Fund availability is reliant upon State appropriation.

The Rural Physician Incentive Revolving Fund is an initiative created to encourage physicians to locate and to remain in the practice of primary care (family practice, general practice, pediatrics, internal medicine, or OB/Gyn) in an Arkansas rural community for a period of four years.

In order to enhance recruitment and retention of physicians in rural communities, each physician funded will be awarded grants totaling $55,000 over a four year period for continuous service in a qualifying full-time rural practice community. This is a competitive process, grants are awarded on the basis of available funds with priority given to rural communities having the greatest need. Repayment of principal, with interest, shall be required for failure to remain in the community for four continuous years practicing primary care on a regular basis. Payment is made at the establishment of a full-time practice, and at the end of each full year in the community in the following allocations:

Establishment $25,000
End of year 2 $10,000
End of year 3 $10,000
End of year 4 $10,000

• Physician/practice must be newly established after June 30, 1999
• Practice must be full-time primary care - a minimum of 32 hours a week
• Practice must be established in a medically underserved area as designated by the U.S. Department of Human Services with a population of 15,000 or less
• Physician/practice must serve Medicaid patients
• Physician must be licensed by the State of Arkansas

Physicians assisted by the Arkansas Rural Medical practice Student Loan and Scholarship Program or the Medical Community Match Program are eligible for benefits under this program.

Rural Medical Clinic Revolving Loan Fund

Background

This fund was established to provide incentive to attract and encourage obstetricians, gynecologists, general pediatricians, general internists, and family practice physicians to establish their practices within a rural area of this state.

Purpose

To be used solely and exclusively for the construction and equipping of rural medical clinics in rural areas of the state.  Loans are limited at $150,000 per medical practitioner or rural medical clinic and have an interest rate of 5% per annum with a duration of ten years.   The Director of the Department of Health is authorized to grant up to $20,000 per year from this fund for critical needs.   

Eligibility Requirements

The Board of Finance determines that the rural community in which the rural medical clinic is to be established through a loan does not have adequate medical services available in the rural community; that the land, building, and equipment to be acquired, constructed, or renovated through the use of the loan funds are needed to meet the medical needs of the community in which it is to be established; that the medical practitioners seeking the loan have entered into an agreement with the board, which shall be a part of the loan application and agreement, if approved, to engage in medical practice in the rural medical clinic for the period for which the loan is applied; and that in the event there are not adequate funds available to make loans for rural medical clinics applying for the loans, the board shall make the loans to those rural medical clinics which, in the opinion of the board, will meet the more critical rural medical needs of this state. 

The Department of Health develops the criteria for evaluating medically underserved areas, which include, but not be limited to:  infant mortality rate; poverty population percentage; population-to-primary-care-physician ratio; and teenage pregnancy rate.