other participant, continuing medical education relevant to these identified needs.

(ii) Assist in providing

(A) Consultation services, if needed, including telephone consultation, to Corps personnel.

(B) A patient referral system, if necessary, to Corps patients and assistance to these patients in obtaining laboratory and pathological services, at accessible locations.

(C) Supervision and consultation for non-physician and non-dentist members of the Corps in the area.

(D) Temporary substitutes for Corps personnel, as needed.

(7) Encourage the utilization of nurse practicioners and physician's assistants in the area and the recruitment of individuals for training in these professions at the participating medical or osteopathic schools. In meeting this requirement, the center must:

(i) Inform potential employers in the area regarding the following, among other subjects:

(A) The function and utilization of nurse practitioners and physician's assistants;

(B) State laws and regulations governing nurse practitioners and physician's assistants; and

(C) Reimbursement and malpractice coverage for services rendered by nurse practitioners and physician's assistants.

(ii) Determine employment opportunities for nurse practitioners and physician's assistants and participate in referral and recruitment of persons for these positions.

(iii) Distribute information in the area concerning the nurse practitioner or physician's assistant training program(s) provided for or conducted by the schools of medicine or osteopathy participating in the program, and participate in recruiting persons in the area for the programs.

(8) Arrange and support educational opportunities for medical and other students at affiliated health facilities, ambulatory care centers, and health agencies throughout the area served by the center. In meeting this requirement, the center must:

(i) Coordinate the conduct of the following programs, including assisting in their planning and development, obtaining the necessary resources and providing administrative support services for:

(A) Clinical education for undergraduate medical or osteopathic students in at least family practice, general internal medicine and general pediatrics;

(B) Education for undergraduate and, as appropiate, graduate students, at a school of dentistry, if one is participating in the program;

(C) Education for students of the other schools or programs participating in the area health education center program under § 57.3805(d)(5); and

(D) Orientation for high school and post-high school students in schools in the area to develop awareness of health careers and health opportunities.

(9) Have an advisory board of which at least 75 percent of the members are persons from the area served by the center, including health service providers and consumers. For this purpose, health service providers are individuals who derive more than 10 percent of their annual income from the health care industry. In meeting this requirement:

(i) The advisory board must be reasonably divided between:

(A) Providers of health care, including at least one physician, dentist, nurse, and allied health professional, who is actively engaged in the practice of his or her profession in the area served by the center; and

(B) Consumers, including students, who reside in the area and are broadly representative of the population in the area in terms of demographic factors, such as race, ethnic background, and sex. The advisory board shall advise the chief administrative official of the center on all major policies concerning the operation of the center, on the establishment of center program priorities and on other issues, as necessary.

(a) The period of time in which any entity will have to meet all the requirements of § 57.3805 will be negotiated on a case-by-case basis depending upon the nature and scope of the planned area health education center program. No contract, however, shall provide funds solely for the planning or development of a program for a period of longer than two years.

(b) Each area health education center program must begin planning for at least one center during the first year of support so that at least one center is fully operational and meets all the applicable requirements of § 57.3805 during the third year of support. Additional centers may be phased in during the first four years of Federal support except that once planning for any center is initiated, it must become fully operational and meet all the applicable requirements of § 57.3805 within three years.

(c) Each school with which the Secretary enters into a contract under this subpart must meet all the requirements of § 57.3805 during the first four years of Federal support except that once planning to add any school is initiated it must meet all the applicable requirements of § 57.3805 within three

years.

§ 57.3807 Evaluation of proposals.

The Secretary, after consultation with the National Advisory Council on Health Professions Education established by section 702 of the Act, shall find proposals technically acceptable

1Entities that are receiving funds in fiscal year 1978 and 1979 to continue payments under contracts originally entered into under section 774 of the Act (as in effect on September 30, 1977) for projects for area health education center programs do not have to be conducted in accordance with these requirements, except that no payments can be made under these contracts in the fiscal year ending September 30, 1979, unless the entity provides assurances satisfactory to the Secretary that not later than September 30, 1979, the project for which payment is made will be a project described in section 781(a) of the Act and that the project will meet the requirements of section 781(b), (c) and (d) of the Act and applicable provisions of these regulations.

§ 57.3810 Applicability of procurement regulations.

Contracts made under this subpart shall be subject to all applicable provisions of the Federal Procurement Regulations, (41 CFR Chapter 1 et seq.) and Department of Health and Human Services Procurement Regulations (41 CFR Chapter 3).

§ 57.3811 Records and audits.

In addition to the record and audit requirements of the Federal and Department procurement regulations, the records and audit requirements of section 705 of the Act apply to contracts under this subpart.

58.209 Who is eligible for financial assistance as a trainee?

58.210 What financial support is available to trainees?

58.211

Duration of traineeships. 58.212 Termination of traineeships. 58.213 What additional Department regulations apply to grantees?

58.214 What other audit and inspection requirements apply to grantees? 58.215 Additional conditions.

Subpart D-Grants for Traineeships in Health Administration, Hospital Administration, or Health Policy Analysis and Planning at Public or Nonprofit Private Educational Institutions Other Than Schools of Public Health 58.221 To what grant program do these regulations apply?

58.222

Definitions.

58.223 Who is eligible to apply for a grant? $58.224 How will applications be evaluated? 58.225 How is the amount of the award determined?

58.226 How long does grant support last? 58.227 For what purposes may grant funds be spent?

58.228 What are the requirements for traineeships and the appointment of trainees?

58.229 Who is eligible for financial assistance as a trainee?

58.230 What financial support is available to trainees?

58.231 Duration of traineeships. 58.232 Termination of traineeships. 58.233 What additional Department regulations apply to grantees?

58.234 What other audit and inspection requirements apply to grantees? 58.235 Additional conditions.

Subpart E-Grants for Allied Health Projects

58.401 To what programs do these regulations apply?

58.402

Definitions.

58.403 Who is eligible to apply for a grant? 58.404 What are the requirements of an affiliation?

58.405 [Reserved]

58.406 What projects can be supported? 58.407 Project requirements.

58.408 How will applications be evaluated? 58.409 How long does grant support last? 58.410 For what purposes may grant funds be spent?

58.411 What health planning requirements must be met?

58.412 What additional Department regulations apply to grantees?

58.413 What other recordkeeping, audit and inspection requirements apply to grantees?

"Nonprofit,"

as applied to any entity, means an entity no part of the net earnings of which inures or may lawfully inure to the benefit of any private shareholder or individual.

"School of public health" means a school which provides training leading to a graduate degree in public health or an equivalent degree and which has been accredited by the Council on Education for Public Health as a school of public health.

"School year" means the traditional approximately 9-month September to June annual session at an educational institution.

"Secretary" means the Secretary of Health and Human Services and any other officer or employee of the Department to whom the authority involved has been delegated.

"State" means any one of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and the Trust Territory of the Pacific Islands.

§ 58.3 Who is eligible to apply for a grant?

Any public or nonprofit educational entity (excluding schools of public health) located in a State is eligible to apply for a grant to support a graduate educational program which has been accredited for the training of individuals for health services administration, hospital administration, or health planning by a recognized body or bodies approved for this purpose by the Secretary of Education.

§ 58.4 What assurances must be provided in an application?

(a) The application must contain assurances satisfactory to the Secretary that:

(1) At least 25 individuals will complete the graduate educational programs of the applicant for which the application was made in the school year beginning in the fiscal year for which an applicant receives a grant;

for

(2) The applicant will expend or obligate at least $100,000 in funds from non-Federal sources to conduct the graduate educational program which the application was made (excluding expenditures for construction, but not excluding expenditures for alterations and renovation) in the school year beginning in the fiscal year for which an applicant receives a grant;

(3) The applicant will maintain for the school year beginning in the fiscal year ending September 30, 1978, and for each subsequent school year for which a grant is applied for, a first year enrollment of full-time students in the graduate educational programs for which the application was made which exceeds the number of full-time first year students enrolled in that program in the school year beginning in the fiscal year ending September 30, 1976 by (i) 5 percent of that number if the number of full-time first-year students enrolled was 100 or less; or (ii) the greater of 2.5 percent of that number, or 5 students if the number of full-time first year students enrolled was more than 100. For purposes of this section the term "fulltime student" means a student who is enrolled in an educational entity on a full-time basis as determined by the educational entity. The number of students enrolled in an educational entity for any year shall be the number enrolled as of October 15 of that school year. The classification of a full-time student as a first year student will be made in accordance with the usual policies of the educational entity, except that no student may be counted more than once as a first year student.

(b) The Secretary may, after consultation with the Council, waive in whole or in part the requirements of paragraph (a)(3) of this section relating to increases in enrollment upon written notification by the appropriate accreditation body or bodies that compliance with that paragraph will

prevent the educational entity from meeting that body or bodies accrediting standards with respect to the graduate educational programs for which the application was made. In deciding whether to give a waiver under this paragraph the Secretary will consider the extent to which the educational entity has means available to it by which it could meet the increased enrollment requirements without failing to meet the accreditation standards.

§ 58.5 What activities must be addressed in an application?

Each application submitted under these regulations must include a plan, in the form the Secretary may prescribe, describing at least three of the following activities that will be undertaken to strengthen the applicant's graduate educational programs in health administration, hospital administration, or health planning:

(a) Providing training which will prepare health administrators and health planners for employment in a wide variety of settings, including public and voluntary agencies, extended care facilities, ambulatory facilities and health planning agencies;

(b) Developing or expanding special curriculum content in health planning, policy and regulation, health economics, quantitative methods and financial management;

(c) Providing field training in settings described in paragraph (a) of this section and which involves experience related to the curricular areas described in paragraph (b) of this section;

(d) Providing field training in settings designed to provide mid-career development for practicing health administrators and planners;

(e) Developing programs designed to provide regional educational opportunities in areas where there are no accredited programs in health services administration or in which there are documented shortages of trained health services administrators or planners.