Requires the Secretary of Health and Human Services to consider certain grant-receiving health centers, federally-qualified health centers, and rural health clinics to be health professional shortage areas.
Repeals cost-sharing requirements that entities approved for assignment of Corps members: (1) charge for their health services; and (2) make certain payments to the United States.
Authorizes the Secretary to carry out demonstration projects allowing individuals to satisfy obligated service requirements through part-time clinical service, but not less than 20 hours per week.
Amends the Internal Revenue Code to exclude from gross income certain scholarship and loan repayment amounts under the National Health Services Corps Program.