N
I n t o
o c
By
ge ar h w L o v e v e r t u w m t b i j J a b s e n u E o
NATION AND WORLD
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University Daily Kansan, April 11, 1984
Page 12
Med school defaulters still owing $55 million
By United Press International
Federal officials are having difficulty collecting much of the money from those who breached pledges under the 12-year-old program, which is designed to move health care in rural, depressed or remote areas, the investigators said.
WASHINGTON — More than 1,700 health professionals whose studies were financed with federal grants have shirked vows to work two or three years in areas short of medical services and owe the government $55 million, according to Senate investigators.
The investigators are aides to Sen.
Charles Percy, R-III.
paid her maid, they said. In another, a 1982 graduate of Georgetown University Medical School collected $86,000 on her government grant, then broke her promise to work in an area short of doctors. Under a 1978 revision in the law, her debt to the government will be triplen.
taken a free ride at the taxpayers' expense," said Percy, whose Senate Governmental Affairs subcommittee had previously turned up evidence that driving luxury cars had failed to repay their low-interest student loans.
"IT'S TIME to let them know that they can't get by with this anymore," she
IN ONE INSTANCE, a Los Angeles physician listed her income last year as
Percy, who has scheduled a subcommittee hearing on the issue Thursday, indicated that the Justice Department is focusing its attention in pressing defaulters to repay.
"The word is out that if you wear down the system, if you hire a lawyer and tangle up your case, you may be to get away without paying." he said.
government collection efforts, the Justice Department commonly would settle for "a few cents on the dollar."
The 1,733 professionals who failed to fulfill their obligations add up to 12.8 percent of the 13,490 students who have received $446.3 million in National Health Corp Scholarships since the program took effect. The defaulters' debts to date total $61 million, $6 million of which is now being repaid.
$123,000 but proposed to officials of the Department of Health and Human Services that she repay her defaulted mortgage by paying a month more than she did her monthly payment.
She said that one doctor volunteered to pay $400 or $500 a month on his defaulted grant, but the Justice Department settled for $100 a month.
"Many health professionals have
An aide said that if a doctor fights
Investigators also noted that 47 doctors who breached agreements and who owe the government $1.2 million in principle and interest collected $2 million last two years for services under Medicare and Medicaid programs.
ONE OF PERCU'S aides said that the government could legally offset the Medicare or Medicaid payments to the doctors, but that the tool has never been used.
ment more than once.
In some instances, the investigators found doctors had tapped the govern-
A new York doctor awarded a grant to attend the University of Illinois College of Medicine refused to fulfill his pledge to work as a general practitioner in an area designated by the government in paying he preferred to study neurology.
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