A nurse practitioner in Alabama has filed a lawsuit against HHS, challenging a $217,500 penalty imposed for breaching a federal student loan relief program meant to increase access to healthcare in rural communities, The Wall Street Journal reported Sept. 5.
Haley Clements, MSN, CRNP, enrolled in the National Health Service Corps program in 2020 and had expected her $25,000 student debt to be forgiven in exchange for three years of service at a qualifying clinic. However, after her supervising physicians at a clinic in Alabama retired and died, Ms. Clements struggled to find another qualifying position and was informed by the state's board of nursing that her medical license could be in jeopardy if she stayed at the clinic sans a supervising physician.
She said she notified the Health Resources and Services Administration, the HHS agency that oversees the loan forgiveness program, and was told that a deceased supervisor did not justify a contract termination. Subsequent requests in 2021 and 2022 to permanently waive her contract were denied.
Facing a $217,500 penalty, she opted to sue the federal government. The National Student Legal Defense Network filed the lawsuit on Ms. Clements behalf Sept. 5 in Alabama district court, arguing the program's strict enforcement imposes unreasonable burden on healthcare workers serving in rural areas or underserved communities, and that it violates an Eighth Amendment clause.
Congress authorized the National Health Services Corps program in 1970, which provides up to $100,000 in loan forgiveness for healthcare professionals in exchange for service at qualifying clinics in rural and underserved areas. Contract breaches, including in involuntary circumstances, puts healthcare workers on the line for $7,500 for every month left in the program, in addition to interest and the original loan relief amount.
HRSA and HHS did not respond to the publication's response for comment, but have previously said the program allows temporary suspensions for participants who lose their jobs. In 2021, less than half of permanent waiver requests were granted, according to a previous investigation from the Journal.