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 10/27/11

1. Federal Funds Available for New Program Year-
   First-Come, First-Served Application Period Begins Now
   
   
2. M-SEARCH Participants and other Providers Not Applying to the National Health Service Corps (NHSC) have Priority Status
   
   
3. When Should You Apply to the NHSC, Instead of MSLRP for Loan Repayment?
   
   
4. "Backing Up" NHSC Applications with an MSLRP Application
   
   
5. Community Foundations: Potential Source for Non-Federal Matching Funds
   

1. First-Come, First-Served Application Period Begins Now:
The First-Come, First-Served MSLRP Application Period begins now and will remain open until all federal program funds are committed.
 
Program Purpose:

The Michigan State Loan Repayment Program (MSLRP) provides loan repayment assistance to medical, dental, and mental health care providers who enter into MSLRP service obligations.  These service obligations require participants to provide full-time, primary health care services at an eligible non-profit practice site, located in a Health Professional Shortage Area (HPSA) for a period of two to four years. 

50% Employer Contribution Requirement:

Please be aware that the MSLRP Program expects to receive no further state funding.  This means that, although the program has federal funds, it has no state funds with which to match those federal dollars to support loan repayment contracts as required by federal guidelines.  With no state funding, employers entering into MSLRP contracts for their providers will be required to contribute 50% of the contract amount.  Employers make their contributions in the form of installment payments corresponding to the six-month payment cycles for MSLRP providers.  Installment payments allow employers to spread the cost of their contributions over multiple budget periods.

Sign-On Bonus Loan Repayment Contracts:

This powerful recruitment tool is designed to help employers located in Health Professional Shortage Areas (HPSAs) gain an advantage in recruiting primary care providers and to save on recruitment fees.  While funds remain available, employers will be able to ask the providers they are recruiting if they'd like to receive just their taxable sign-on bonus, or if they'd prefer to receive double that amount (up to $35,000 per year) in income tax-free educational loan repayment. 

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

• Helps HPSA employers recruit high-demand providers and save on recruitment fees
• Doubles sign-on bonuses and turns them into income tax-free loan repayment benefits for recruits
• Contracts are awarded on a first-come, first-served basis, until all funds are committed.
• Expedited application review, eligibility determination, and contract execution
• The MSLRP Specialist works with employers and providers during the application process and helps employers customize contract terms to meet their organizations' recruitment needs.
  • Contracts may start as soon as the first of the month following eligibility determination and employment.
  • Flexible contract amounts and lengths, up to $35,000 per year, for two to four years

Provider Retention Loan Repayment Contracts:

This contract is designed to help employers retain valuable primary care medical, dental, and mental health care providers.  It allows employers to double the amount of funds they are willing to commit to the retention of needed providers (up to $35,000 per year), and turns them into tax-free educational loan repayment benefits.  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 Specialist assistance in the application process, and; customized contracts in terms of flexible loan repayment amounts and contract lengths.

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

2. M-SEARCH Participants and other Providers Not Applying to the NHSC have Priority Status:

M-SEARCH participants and other providers who clearly state that they have not applied to the NHSC, and will not apply during the 2011- 2012 NHSC application period, will receive priority status in MSLRP application review, eligibility determination, and contract processing.  Employers must also state that their providers have not, and will not apply to the NHSC for this program year.  In addition, employers must state the annual dollar amount of the contract, the number of contract years (2-4), and their willingness to pay the 50% employer contribution.  Providers and employers must attach their statements to their application forms.

To receive priority over other providers not applying to the NHSC, applicants who have participated in the M-SEARCH program must include the location and start date of their M-SEARCH rotations in the statements attached to their applications. 

Employers, who have not yet taken advantage of M-SEARCH, may want to visit the M-SEARCH Website at: www.michigan.gov/msearch and contact the M-SEARCH Support Team at: msearch@michigan.gov or 517-853-3945 to learn how they can use this program to create a pipeline of primary care providers interested in working in underserved areas upon graduation. 

3. When Should You Apply to the NHSC, Instead of MSLRP for Loan Repayment?

The NHSC also provides loan repayment to primary care providers working at practice sites located in Health Professional Service Areas (HPSAs).  The NHSC is 100% federally funded, so no employer contribution is required.  In general, providers at practice sites with higher Health Professional Shortage Area (HPSA) scores - indicating a more severe provider shortage, should consider applying to the NHSC because they have the best chance of being accepted into the program.  The NHSC first approves eligible applicants working at the highest HPSA score sites and then continues to approve applicants at practice sites with successively lower scores, until all funds are committed.  This year, the NHSC has determined that NHSC Scholars who received scholarships while still in school will need to complete their service obligations at practice sites with HPSA scores of 16 or above.  This means they are likely to first approve eligible NHSC Loan Repayment Program (LRP) applicants with HPSA scores of 16 or above and then, during the following months, work down through each lower score until all funds are committed.  The NHSC application period is expected to open sometime this fall.  You can lean more about the NHSC at www.nhsc.hrsa.gov.

Because providers with higher HPSA scores are the most likely to be accepted in the NHSC Loan Repayment Program, MSLRP will not review MSLRP applications of providers with practice site HPSA scores of 12 or greater if:

• They have an active NHSC application, or
• Plan to apply during the 2011/2012 program year.

MSLRP will review the applications of these providers if they are notified they have not been accepted by the NHSC, or they and their employer decide to withdraw their NHSC application and both provide statements describing the situation. 

4. "Backing Up" NHSC Applications with an MSLRP Application

Providers who back up their NHSC application with an MSLRP application will be ready to contract with MSLRP, if the NHSC doesn't accept them into the program, or if they withdraw their NHSC application.  Providers may back up their NHSC applications with an MSLRP application if the:

• Highest HPSA score of the practice sites at which the provider will complete their service obligation is 11 or less, and the
• Employer provides MSLRP with a statement indicating their willingness to make the required 50% employer contribution if:
  • The provider is notified they have not been accepted into the NHSC, or
  • The provider and employer agree to withdraw the NHSC application prior to receiving notification. This allows those who believe they will not be accepted into the NHSC to begin their MSLRP contracts, instead of continuing to wait for notification.

Providers and employers who meet these requirements may submit a single MSLRP application package including the Provider Application, Parts A & B, and the Practice Site Application, which should be completed by the employer.  The MSLRP Office will review these applications in the order in which they are received.  Once an application is reviewed and provider and practice site eligibility is determined, both the provider and employer will be notified that they are pre-approved for contracting with MSLRP.

The contracting process will begin for pre-approved applicants in the order in which providers and their employers notify the program they are ready to start their MSLRP contracts and both provide statements describing a negative NHSC determination or the joint decision to withdraw the application. Those who request contracts by July 1, 2012 should receive contract start dates within the next two months. Depending on volume, those who request contracts after that date may have to wait longer for their contracts to begin.  Please note that because MSLRP applications are effective up to one year, pre-approved applicants who wait longer to start their contracts will need to reapply to the program.

5. Community Foundations: Potential Source of Non-Federal Matching Funds

Employers typically make MSLRP contributions from their organization's operating funds.  Some, however, are now contacting their local community foundations to discuss a partnership for funding MSLRP employer contributions.  Like employers, community foundations supporting MSLRP loan repayment can double their contributions by leveraging them with federal matching program funds.  Through such partnerships, employers and their community foundations can offer tax-free loan repayment as an incentive for recruiting and retaining needed primary care providers for their communities. 

You are only three clicks away from contacting your local community foundation about joining forces in bringing needed primary care providers to your community:

1. Click on: http://www.forgoodforever.org/Default.htm to enter the Michigan Community Foundations Website,
2. Click on the button labeled "Find Your Local Community Foundation," then
3. Click your county on the map provided.

Employers and community foundations who have questions about partnering to provide tax-free loan repayment may call Ken Miller at 517 241-9946 for a phone consultation or to schedule a conference call.

You will find additional program information regarding MSLRP eligibility requirements and application forms on the MSLRP Website at: www.michigan.gov/mslrp. 

If you have further questions about the program, please call or email Ken Miller, MSLRP Specialist, at 517 241-9946 or millerk3@michigan.gov.