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B-164031(5) 1 (1974-07-30)

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                        COMPTROLLER GENERAL OF THE UNITED STATES
    WA                              R W ING ON. D.C. 20 .


      B- 164031 (5)                         JL309



c     The Honorable Marvin L, Esch
      House of Representatives                        LM092487
   -7
      Dear Mr. Esch:

          In accordance with your April 1, 1974, request and discussions
      with your office, we reviewed aspects of the Public Health and National
      Health Service Corps Scholarship Training Program as authorized by
      section 225 of Public Law 92-585. We discussed the results of our re-
      view with officials of the Commissioned Personnel Operations Division,
      U. S. Public Health Service (PHS), Department of Health, Education,
      and Welfare (HEW), and their comments have been considered in prepar-
      ing this report. However, we have not submitted the report to them for
      review and written comments,

      BACKGROUND

          As stated in the law, the program's purpose is to obtain trained
      physicians, dentists, nurses, and other health specialists for the
      National Health Service Corps and other PHS units. The other units
      include the Indian Health Service, PHS hospitals and clinics, Coast
      Guard medical facilities, and Federal prison medical facilities.

          The legislation authorizing the program was enacted on October 27,
      1972, with an authorization of $3 million for the fiscal year ended
      June 30, 1974. Funds were made available in December 1973 when the
      President signed the HEW Appropriations Act. The Secretary of HEW
      signed the implementing regulations for the program on May 17, 1974.

      DELAY IN ISSUING REGULATIONS

          At our request the Deputy Director of the Commissioned Personnel
      Operations Division provided us with a timeframe of the actions involved
      in issuing the regulations. This timeframe covered from November 20,
      1973, the date the first acceptable draft of the regulations was completed,
      to April 16, 1974. The Deputy Director did not provide a detailed explana-
      tion of the delay before November 20, 1973, but he did say that determin-
      ing the appropriate interest rate to charge students in case of default was
      a problem which contributed to the delay.

          From November 29, 1973, until March 28, 1974, various offices
      within HEW were reviewing the regulations. On March 28, 1974, a
      Notice of Proposed Rule Making was printed in the Federal Register

                           ,   I II

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