The bill proposes a comprehensive overhaul of the Primary Care Practitioner Loan Redemption Program, renaming it the Health Care Professional Loan Redemption Program. It expands eligibility to include not only primary care practitioners but also psychiatrists and other health care professionals as designated by the Commissioner of Health. The financial limits for loan redemption are revised, allowing up to $120,000 for participants at approved sites and $100,000 for those at other locations, with a stipulation that at least 40% of available funds each year must be reserved for those serving at approved sites. The bill also updates definitions and criteria for approved sites and service obligations, emphasizing the need for service in underserved areas.

Additionally, the bill removes the requirement for participants to be employed at an approved site while ensuring that a significant portion of funds is still allocated to those who are. It appropriates $10 million to the Higher Education Student Assistance Authority (HESAA) to support the program and introduces a penalty for participants who nullify their contracts before completing two years of service, requiring them to repay 50% of the redeemed loan amount. The bill also maintains a provision dedicating 25% of the annual funds to the Nursing Faculty Loan Redemption Program. These changes aim to mitigate the anticipated shortage of healthcare professionals in New Jersey, particularly in primary care and mental health, in response to the growing demand from an aging population and the effects of the COVID-19 pandemic.

Statutes affected:
Introduced: 18A:71C-36.1, 18A:71C-46.1, 18A:71C-58, 18A:71C-65