The Department may make loans pursuant to this Chapter to
physicians to permit them to participate in risk retention groups, including
the cost of any required capital contribution.
(a) Eligibility. A physician is eligible for
a loan to participate in a risk retention group if the physician is licensed
and practicing medicine in Wyoming;
(b) Amount of loan. The principal amount of
the loan shall be no greater than the amount needed to participate in the risk
retention group, except that the amount of the loan shall not exceed
one-hundred fifty percent (150 %) of the physician's most recent annual
malpractice insurance premium. The amount shall also be prorated for the
percentage of the physician's actual practice in Wyoming. The Department may
approve the making of the loan upon its determination of compliance with this
section. Loan proceeds shall not be disbursed until the physician has paid or
immediately will pay for this participation in the risk retention
group.
(c) Terms of the contract.
Upon approval of the application, the physician shall enter into a contract
with the Department. The contract shall include the following terms:
(i) Physician's Specialty. The physician
shall continue to practice in the physician's specialty or sub-specialty for
the entire period of time for which the loan remains unpaid;
(ii) Interest rate. The interest rate for
loans made pursuant to this Chapter shall be determined by the Wyoming State
Treasurer at an annual rate equal to the average prime interest rate during the
preceding fiscal year plus one percent (1%) and shall be adjusted effective
January
st of each calendar year, including
January 1st, 2005. To determine the average prime
interest rate, the State Treasurer shall average the prime interest rate for at
least seventy-five percent (75%) of the thirty (30) largest banks in the United
States;
(iii) Time of repayment.
Loans made pursuant to this Section shall be repaid within ten (10) years fi-om
the date of disbursement of loan proceeds, together with interest as determined
by the State Treasurer and as noted in Section
10(c)
(iii), above;
(iv) Participation in Medicaid and CHIP. The
physician shall become and shall remain a provider of Medicaid and CHIP
services for the entire period of time for which the loan remains
unpaid;
(v) Documentation. A
physician shall, upon request of the Department, promptly provide documentation
to establish that the physician has complied with the terms of the contract and
to determine the amount of the loan that should be provided under the
Act;
(vi) Insufficient funds. If
funding from the account is insufficient to provide assistance to all eligible
applicants, the Department may, at its discretion, reduce the amount of
assistance to each eligible applicant on a pro rata basis. In no event may the
Department make loans in excess of the total appropriation.
(vii) Security interest. The physician shall
provide the state with a security interest in the physician's membership or
shareholder interest in the risk retention group; and
(viii) Breach of contract. In addition to any
other civil or criminal penalties that may be imposed by law, any physician or
contracting entity that fails or refiises to fulfill the terms of the contract
required under this section shall be in breach of the contract. In the event of
a breach of the contract, the physician shall immediately repay the outstanding
principal on the loan, plus accrued interest under the contract, together with
attorney fees, and any other costs of collection.
