---
kind: "section"
citation: "42 U.S.C. § 254h"
title: "42"
title_heading: "The Public Health and Welfare"
number: "254h"
heading: "Provision of health services by Corps members"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/254h"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter II — General Powers and Duties"
  - "Part D — Primary Health Care"
  - "Subpart ii — national health service corps program"
---

# §254h. Provision of health services by Corps members

- (a) **Means of delivery of services; cooperation with other health care providers—** In providing health [services](/usc/42/201.md?p=a) in a health professional shortage area, Corps members shall utilize the techniques, facilities, and organizational forms most appropriate for the area, population group, [medical facility](/usc/42/300s–3.md?p=11), or other public facility, and shall, to the maximum extent feasible, provide such [services](/usc/42/201.md?p=a) (1) to all individuals in, or served by, such health professional shortage area regardless of their ability to pay for the [services](/usc/42/201.md?p=a), and (2) in a manner which is cooperative with other [health care providers](/usc/42/300aa–33.md?p=1) serving such health professional shortage area.
- (b) **Utilization of existing health facilities; lease, acquisition, and use of equipment and supplies; permanent and temporary professional services—**
  - (1) Notwithstanding any other provision of law, the [Secretary](/usc/42/201.md?p=c) may (A) to the maximum extent feasible make such arrangements as he determines necessary to enable Corps members to utilize the health facilities in or serving the health professional shortage area in providing health [services](/usc/42/201.md?p=a); (B) make such arrangements as he determines are necessary for the use of equipment and supplies of the [Service](/usc/42/201.md?p=a) and for the lease or acquisition of other equipment and supplies; and (C) secure the permanent or temporary [services](/usc/42/201.md?p=a) of physicians, dentists, nurses, [administrators](/usc/42/4005.md?p=1), and other health personnel. If there are no health facilities in or serving such area, the [Secretary](/usc/42/201.md?p=c) may arrange to have Corps members provide health [services](/usc/42/201.md?p=a) in the nearest health facilities of the [Service](/usc/42/201.md?p=a) or may lease or otherwise provide facilities in or serving such area for the provision of health [services](/usc/42/201.md?p=a).
  - (2) If the individuals in or served by a health professional shortage area are being served (as determined under [regulations](/usc/42/201.md?p=d) of the [Secretary](/usc/42/201.md?p=c)) by a [hospital](/usc/42/300s–3.md?p=1) or other health care delivery facility of the [Service](/usc/42/201.md?p=a), the [Secretary](/usc/42/201.md?p=c) may, in addition to such other arrangements as he may make under [paragraph (1)](#b-1), arrange for the utilization of such [hospital](/usc/42/300s–3.md?p=1) or facility by Corps members in providing health [services](/usc/42/201.md?p=a), but only to the extent that such utilization will not impair the delivery of health [services](/usc/42/201.md?p=a) and [treatment](/usc/42/11851.md?p=11) through such [hospital](/usc/42/300s–3.md?p=1) or facility to individuals who are entitled to health [services](/usc/42/201.md?p=a) and [treatment](/usc/42/11851.md?p=11) through such [hospital](/usc/42/300s–3.md?p=1) or facility.
- (c) **Loan; purposes; limitations—** The [Secretary](/usc/42/201.md?p=c) may make one loan to any entity with an approved application under [section 254f of this title](/usc/42/254f.md) to assist such entity in meeting the costs of (1) establishing medical, dental, or other health profession [practices](/usc/42/17061.md?p=19), including the development of medical practice management systems; (2) acquiring equipment for use in providing health [services](/usc/42/201.md?p=a); and (3) renovating buildings to establish health facilities. No loan may be made under this subsection unless an application therefor is submitted to, and approved by, the [Secretary](/usc/42/201.md?p=c). The amount of any such loan shall be determined by the [Secretary](/usc/42/201.md?p=c), except that no such loan may exceed $50,000.
- (d) **Property and equipment disposal; fair market value; sale at less than full market value—** Upon the expiration of the assignment of all Corps members to a health professional shortage area, the [Secretary](/usc/42/201.md?p=c) may (notwithstanding any other provision of law) sell, to any appropriate local entity, equipment and other property of the United States utilized by such members in providing health [services](/usc/42/201.md?p=a). Sales made under this subsection shall be made at the fair market value (as determined by the [Secretary](/usc/42/201.md?p=c)) of the equipment or such other property; except that the [Secretary](/usc/42/201.md?p=c) may make such sales for a lesser value to an appropriate local entity, if he determines that the entity is financially unable to pay the full market value.
- (e) **Admitting privileges denied to Corps member by hospital; notice and hearing; denial of Federal funds for violation; “hospital” defined—**
  - (1)
    - (A) It shall be unlawful for any [hospital](/usc/42/300s–3.md?p=1) to deny an authorized Corps member admitting privileges when such Corps member otherwise meets the professional qualifications established by the [hospital](/usc/42/300s–3.md?p=1) for granting such privileges and agrees to abide by the published bylaws of the [hospital](/usc/42/300s–3.md?p=1) and the published bylaws, rules, and [regulations](/usc/42/201.md?p=d) of its medical staff.
    - (B) Any [hospital](/usc/42/300s–3.md?p=1) which is found by the [Secretary](/usc/42/201.md?p=c), after notice and an opportunity for a hearing on the record, to have violated this subsection shall upon such finding cease, for a period to be determined by the [Secretary](/usc/42/201.md?p=c), to receive and to be eligible to receive any Federal funds under this chapter or under titles XVIII, XIX, or XXI of the Social Security Act [[42 U.S.C. 1395](/usc/42/1395.md) et seq., 1396 et seq., 1397aa et seq.].
  - (2) For purposes of this subsection, the term “[hospital](/usc/42/300s–3.md?p=1)” includes a [State](/usc/42/201.md?p=f) or local public [hospital](/usc/42/300s–3.md?p=1), a private profit [hospital](/usc/42/300s–3.md?p=1), a private [nonprofit](/usc/42/300s–3.md?p=3) [hospital](/usc/42/300s–3.md?p=1), a general or special [hospital](/usc/42/300s–3.md?p=1), and any other type of [hospital](/usc/42/300s–3.md?p=1) (excluding a [hospital](/usc/42/300s–3.md?p=1) owned or operated by an [agency](/usc/42/8262.md?p=1) of the Federal Government), and any related facilities.

## Source credit

(July 1, 1944, ch. 373, title III, § 335, as added Pub. L. 94–484, title IV, § 407(b)(3), Oct. 12, 1976, 90 Stat. 2275; amended Pub. L. 97–35, title XXVII, § 2705, Aug. 13, 1981, 95 Stat. 907; Pub. L. 101–597, title I, § 106, title IV, § 401(b)[(a)], Nov. 16, 1990, 104 Stat. 3018, 3035; Pub. L. 107–251, title III, § 306, Oct. 26, 2002, 116 Stat. 1648.)

## Notes

### Editorial Notes

### References in Text

The Social Security Act, referred to in subsec. (e)(1)(B), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Titles XVIII, XIX, and XXI of the Act are classified generally to subchapters XVIII (§ 1395 et seq.), XIX (§ 1396 et seq.), and XXI (§ 1397aa et seq.), respectively, of chapter 7 of this title. For complete classification of this Act to the Code, see section 1305 of this title and Tables.

### Amendments

2002—Subsec. (e)(1)(B). Pub. L. 107–251 substituted “titles XVIII, XIX, or XXI of the Social Security Act” for “titles XVIII or XIX of the Social Security Act”.

1990—Subsecs. (a), (b)(1)(A), (2), (d). Pub. L. 101–597, § 401(b)[(a)], substituted reference to health professional shortage area for reference to health manpower shortage area wherever appearing.

Subsec. (e)(1)(A). Pub. L. 101–597, § 106, substituted “authorized Corps member admitting privileges” for “authorized physician or dentist member of the Corps admitting privileges”.

1981—Subsec. (a)(2). Pub. L. 97–35, § 2705(a), substituted provisions respecting cooperation with other health care providers, for provisions respecting direct health services programs.

Subsec. (c)(4). Pub. L. 97–35, § 2705(b), struck out cl. (4) relating to appropriate continuing education programs.