Thank you for your interest in the Michigan Essential Health Provider (MEHP) Program, also known as the State Loan Repayment Program (SLRP).    The Michigan SLRP provides loan repayment assistance to medical, dental and mental health care professionals who are willing to provide full-time health care services in a Health Professional Shortage Area (HPSA) at a not-for-profit health clinic for two or more years.   Federal funding through the National Health Service Corps of the Health Resources and Services Administration (HRSA) is equally matched with State of Michigan or Local Match Funds contributed by health care employers to provide this loan repayment assistance.

The information presented on this website is designed to be read in the same order as the navigational headings listed below.  Please use these headings to cover all of the material on the website.  This material will give you an understanding of Michigan SLRP sufficient to determine your best application strategy.

***Michigan SLRP Program Update***
Posted 3/27/08

1.   FY 2008 First-Come, First-Served Application Period Remains Open

2.   New Recruitment and Retention Loan Repayments Contracts

3.   FY 2009 Application Period Extended from 1-3 months:  April - June 2008

4.    MSLRP Policy Change

1.  FY 2008 First-Come, First-Served Application Period Remains Open:

The Fiscal Year 2008 First-Come, First-Served Application Period remains open until all funds are committed.  During this application period, providers with employers electing to make a 50% contribution toward their loan repayment contracts, may apply for a Sign-On Bonus Loan Repayment Contract or a Provider Retention Loan Repayment Contract.  These contracts are similar to the more familiar Local Match Contracts, but have special features and benefits to help employers recruit and retain needed providers.  These contracts are discussed in detail below.

2.  New Recruitment and Retention Loan Repayment Contracts*:

Employers electing to make a 50% contribution toward their providers' loan repayment contract can now take advantage of the special benefits offered by the Sign-On Bonus Loan Repayment and Provider Retention Loan Repayment Contracts available during the FY 2008 First-Come, First-Served Application Period.

Sign-On Bonus Loan Repayment Contracts :

This powerful new recruitment tool is designed to help employers:

• Save on recruitment fees, and
• Gain a recruitment advantage

While funds remain available, employers recruiting their next primary care medical, dental or mental health care provider, can ask their recruits if they'd prefer to receive just their taxable sign-on bonus, or receive double that amount (up to $50,000) in tax-free educational loan repayment.

What are the benefits of recruiting with Sign-On Bonus Loan Repayment Contracts?

• Helps employers recruit high-demand providers, while they save on recruitment fees
• Doubles the amount of your sign-on bonus
• Turns double your sign-on bonus into tax-free loan repayment for your recruits.
• Contracts are awarded on a first come, first-served basis, until all funds are committed.
• You receive expedited application review, eligibility determination and contract execution.
• The MSLRP Analyst works along with employer and provider during the application process.
• The MSLRP Analyst works with each employer to customize contract terms designed to meet their organization's recruitment needs.
  • Contracts may start as soon as the first of the month following eligibility determination and employment.
  • Flexible loan repayment amounts up to $50,000 for the first 2 years
  • Flexible contract lengths, with re-contracting options for up to 3 or 4 years
  • Flexible provider payment schedules allowing providers to receive:
    • The full contract amount up front, to help you compete for recruits in competitive situations, or
    • Six-month installments, to help conserve cash flow.

Provider Retention Loan Repayment Contracts:

This contract is designed to help employers retain valuable primary care medical, dental or mental health care providers.  It allows employers to double the amount of funds they are willing to commit to retaining a needed provider (up to $50,000), and turn it into tax-free educational loan repayment.  Like Sign-On Bonus Contracts discussed above, Provider Retention Loan Repayment Contracts are part of the First-Come, First-Served Application Period and will continue to be awarded until all funds are committed.

The benefits of using Provider Retention Loan Repayment Contracts are similar to those listed above for Sign-On Bonus Loan Repayment Contracts, including:  expedited application review, eligibility determination and contract execution; MSLRP Analyst assistance in the application process, and; customized contracts in terms of flexible loan repayment amounts, contract lengths and provider payment schedules.

How do you get started? Call Ken Miller, MSLRP Analyst, at (517) 241-9946 for assistance in applying for a Sign-On Bonus or Provider Retention Loan Repayment Contract.

* Please Note: Federal requirements do not allow MSLRP contracts to be used to as a salary offset.  Salaries for health professionals participating in the MSLRP must be based on prevailing rates in your area.

3.  FY 2009 Annual Application Period Extended from 1 to 3 months:  April - June 2008:

The FY 2009 Annual Application Period will begin on April 1st and continue through June 30, 2008, for contracts beginning October 1, 2008.  Application packages must be postmarked no earlier than April 1, 2008 and no later than June 30, 2008.  During this period, providers may apply for Local Match Contracts, requiring a 50% employer contribution, or for Competitive Contracts, which currently require no employer contribution.

This extended primary application period is expected to result in a significant increase in application volume and to reduce the liklihood of a second application period being offered in November or December 2008.  As a result, providers intending to apply for a FY 2009 MSLRP contract should do so during the April - June 2008 Application period.

Increased application volume will increase competition for Competitive Contracts.  This means that non-priority applicants (non-priority providers working at non-priority practice sites) and their employers, should seriously consider applying for Local Match Contracts.  Local Match Contracts require a 50% employer contribution, allowing employers to double the impact of their recruitment and retention dollars.  A complete listing of priority providers and priority practice sites can be found on the MSLRP website at www.michigan.gov/mislrp, under the heading "SLRP Provider Selection Criteria".  You will find more information on MSLRP contracts and the selection process under "SLRP Funding and Contracts" and "SLRP Selection Terms, Rules & Process".

4.  MSLRP Policy Change:

These policy and procedure changes are effective immediately and supersede any contradictory information found on the MSLRP website.

• Applicants may now include their relevant undergraduate, in addition to their graduate student loans, as part of their total eligible MSLRP debt.

If you have any questions, please call Ken MIller, MSLRP Analyst, at 517-241-9946.

SLRP Program Requirements for Health Care Providers and Employers:
Direct Primary Care:
SLRP providers must provide direct primary care services at an Approved SLRP Practice Site in order to receive SLRP payments.  SLRP providers are required to work at least 40 hours per week and provide direct primary patient care for no fewer than 32 hours per week.  Also, please note that Federal Program Guidelines do not consider services provided in an Emergency Room or Trauma Center to be primary care.

Direct Primary Care Must Be Provided in an Approved SLRP Practice Site:

To be an Approved SLRP Practice Site your practice site must, on the start date of your SLRP contract:

1. Be located in a Health Professional Shortage Area (HPSA); and
2. Meet all other SLRP Program requirements as described in the SLRP Practice Site Application and Declaration of Intent.

Health Professional Shortage Areas (HPSAs):
HPSA designations change over time.  The key point is that a SLRP provider's practice site must be in a HPSA on the start date of their SLRP contract.  Employers may use the SLRP as part of their recruitment and retention strategy at multiple practice sites across multiple HPSAs. 

You may want to check the various listings of HPSAs under Resources for Locating HPSAs toward the end of this website.  For more information on HPSA designations please visit the MDCH Health Professional Shortage Area Web site. 

SLRP Practice Site Requirements:
In order to certify that a practice site meets program requirements, employers must complete a SLRP Practice Site Application & Declaration of Intent for the practice site at which their health care provider intends to meet their SLRP service obligation over the term of their contract.  Employers may complete and mail the SLRP Practice Site Application & Declaration of Intent to the SLRP Office at any time.  However, health care providers must include an updated SLRP Practice Site Application & Declaration of Intent as part of their Compete, Single-submission SLRP Provider Application Package, which they must mail to the SLRP Office.

Generally, to become an Approved SLRP Practice Site, the practice site must:

1. Be located in a Federally designated HPSA.
2. Be a public or private not-for-profit agency with an IRS code designation of 501(c)(3).
3. Accept Medicaid and Medicare patients.
4. Agree to employ any participating SLRP provider for an average of 40 or more hours per week throughout the SLRP contractual period.
5. Participate in, or accept all members of a Qualified Health Plan (QHP), if one exists in the county in which it is located.  A QHP is a managed health care plan, such as an HMO or PPO which is enrolled as a provider with the Michigan Medicaid Program.
6. Make a sliding fee scale available to all patients, which is based on federal poverty guidelines.

Please see the SLRP Site Practice Application & Declaration of Intent for a complete list of SLRP Requirements.  The SLRP Office, within the Michigan Department of Community Health (MDCH) will review your SLRP Practice Site Application & Declaration of Intent to determine whether your practice site is located in a HPSA and meets all program requirements.

The best approach in securing practice site approval is for an employer to submit a SLRP Site Practice Application & Declaration of Intent early in the process.  This allows the health care provider to focus on completing the rest of their SLRP application package.  It also allows time for an employer and the SLRP Office to work together in resolving any problems with meeting program requirements.  However, as with HPSA designation status, factors my change before the start of a health care provider's SLRP contract to cause the practice site to no longer meet SLRP requirements.  This is why an updated SLRP Practice Site Application and Declaration of Intent must be included as part of each health care provider's Complete, Single-submission SLRP Application Package.

National Health Service Corps Information:
In addition to the Michigan State Loan Repayment Program, providers and employers should consider the National Health Service Corp's (NHSC) Federal Loan Repayment Program (LRP) and Scholarship Program.  The National Health Service Corps' Federal LRP offers financial incentives similar to those offered by Michigan SLRP, but also allows health care providers at private, for-profit practice sites to participate.  The federal office contact for these programs is the National Health Service Corps at 800 221-9393.  You will find their website at: http://nhsc.bhpr.hrsa.gov/index.asp.

You may apply for both the National Health Service Corp's Loan Repayment Program and the Michigan State Loan Repayment Program at the same time, but cannot participate in both at the same time.

If you have questions about the National Health Service Corps after reading their website, you can contact Robert Esdale, NHSC Analyst, here at the Department of Community Health.  His email is: EsdaleR@michigan.gov , and his phone number is: 517 373-2790.

Eligible Health Care Providers and Maximum Contract Amounts:
Following is the list of health care providers who may apply for the Michigan State Loan Repayment Program, along with their maximum annual SLRP contract amounts.  Providers cannot receive SLRP Payments in excess of the amount of their verified professional education debt, and must use all SLRP Payments to repay their professional education loans.  SLRP contracts and their corresponding service obligations run for two years.  For example, the typical physician contract would provide SLRP payments of $50,000 over a two year period.

Eligible SLRP Provider Types:

Primary Medical:

• Dentists
  • D.D.S or D.M.D: $25,000
• Physicians
  • Primary Care Physicians, Family Practice, Internal Medicine, OB/GYN, Pediatrics: $25,000

Mid-Level Medical Providers

• Certified Nurse Midwives: $15,000
• Nurse Practitioners: $15,000
• Physician assistants: $15,000

Primary Mental Health Care Providers

• Clinical or Counseling Psychologists:
  • Ph.D, Psy,D., or equivalent: $25,000
• Licensed Professional Counselors:
  • Doctoral:  $25,000
• Marriage and Family Therapists:
  • Doctoral: $25,000
• Psychiatrists: $25,000

Mid-Level Mental health Care Providers

• Clinical Social Worker: $15,000
• Licensed Professional Counselors
  • M.A.: $15,000
• Marriage and Family Therapists: $15,000
• Mental Health Counselors
  • M.A. Clinical; $15,000
• Psychiatric Nurse Specialists: $15,000

MSLRP Mental Health Care Provider Policy Expansion:

As part of an initiative to expand participation of mental health care workers in the Michigan State Loan Repayment Program, we are expanding eligibility requirements in terms of eligible practice sites and sources of funds used for local match contracts.  These policy changes are effective January 1, 2008.

Expansion of Eligible Practice Sites:

In the past, only mental health care providers working in State-funded institutions were eligible to apply for MSLRP loan repayment contracts.  These State-funded institutions included:

• State Psychiatric Hospitals
• Forensic Medicine Centers
• Community Mental Health (CMH) Agencies
• State Correctional Facilities

Beginning January 1, 2008, mental health care providers working at any MSLRP priority practice site, located within a Mental Health Professional Shortage Area, will be eligible to apply for a loan repayment contract.  Current priority practice sites include:

• Local Health Departments
• State-funded Institutions, including:
  • State Psychiatric Hospitals
  • Forensic Medicine Centers
  • Community Mental Health (CMH) Agencies
  • State Correctional Facilities
  • State-funded Primary Care Clinics
• Federally Qualified Health Centers (FQHC) and FQHC Look-Alikes
• Critical Access Hospital (CAH)-Administered Primary Care Clinics
• Certified Rural Health Clinics (RHC) Designated as Facility HPSAs

Expansion of Eligible Sources of Funds used for Local Match Contributions:

In the past, employers of eligible mental health care providers could only use Community Mental Health (CMH) funds appropriated by the Michigan Legislature to pay the employer/local matching contribution required for Local Match Contracts (then called CMH/DOC State Match contracts).  In addition, employers at Department of Corrections (DOC) Facilities that did not receive CMH funds, could use their DOC appropriations to pay the employer/local matching contribution required for Local Match Contracts.

Beginning January 1, 2008, employers at any of the MSLRP priority practice sites described above may use any verifiable, non-federal source of funds to pay the employer/local matching contribution required on Local Match Contracts for their eligible mental health care providers.  Please see "Potential Funding Sources for Employer/Local Matching Contributions", below.

Eligible Mental Health Care Providers:

The list of mental health care providers eligible to apply for MSLRP loan repayment contracts has not changed.  Eligible primary mental health care providers, which may receive up to $50,000 over an initial two-year loan repayment contract, include:

• Psychiatrists
• Clinical or Counseling Psychologists, with a PH. D, Psy.D or equivalent
• Licensed Professional Counselors, with a Doctorate Degree
• Marriage and Family Therapists, with a Doctorate Degree

Eligible mid-level mental health care providers must have a Master's Degree and may receive up to $30,000 over an initial two-year loan repayment contract.  These include:

• Clinical Social Workers
• Licensed Professional Counselors
• Marriage and Family Therapists
• Mental Health Counselors, (Clinical)
• Psychiatric Nurse Specialists

Potential Funding Sources for Employer/Local Matching Contributions

As mentioned above, Local Match Contracts allow employers and their communities to double the impact of funds they intend to use for recruiting and retaining needed medical, dental and mental health care providers.  Every dollar contributed by an employer and/or local community is matched by a federal dollar to assist in their provider recruitment and retention efforts.

While employers often contribute matching dollars from their organizations' operating funds to meet this requirement, it makes sense for them to turn to other sources when funds are not readily available.  Employers may use any verifiable, non-federal funds which have been transferred to them for making Employer/Local Matching Contributions on a Local Match Contract.  Sources of such non-federal funds may include, but are not limited to:

• A practice site's sponsoring agency or parent company
• Community leaders
• Community development programs
• Business, service, or nonprofit organizations
• Local, state or national foundations or charities
• State General Funds
• Provider organizations representing the type of medical, dental, or mental health care provider needed in the community.

This list is meant to suggest possible sources of non-federal matching contributions and to serve as the starting point of a successful search for funds to serve as employer/local matching contributions.  Other similar funds may be eligible for use by employers as matching funds for Local Match Contracts if they come from a verfiable, non-federal source.