Rural States Physician Recruitment and Retention Demonstration Act of 2001 - Directs the Secretary of Health and Human Services to establish a Rural States Physician Recruitment and Retention demonstration program for ameliorating physician shortage, recruitment, and retention problems in rural States. Directs the Secretary to: (1) increase by up to 50 percent the number of residency and fellowship positions at each medical residency training program in each of two demonstration States selected by the Secretary; (2) negotiate with representatives of each approved medical residency training program in a demonstration State for such additional positions; and (3) establish a loan repayment and forgiveness program under which the Secretary assumes the obligation to repay the educational loan of a participating residency or fellowship graduate (with limitations).
Authorizes the Secretary to waive any requirements under title XVIII (Medicare) of the Social Security Act if necessary to carry out the ten-year demonstration program.
Directs the Secretary to establish a State-specific health professions database to track health professionals in each demonstration State with respect to specialty certifications and related practice, license, and training information.
Requires a joint demonstration program evaluation by the Council on Graduate Medical Education and the Medicare Payment Advisory Commission.