[Federal Register: January 15, 2008 (Volume 73, Number 10)]
[Notices]
[Page 2512]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15ja08-78]
[[Page 2512]]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services Administration
State Offices of Rural Health Grant Program
AGENCY: Health Resources and Services Administration, HHS.
ACTION: Notice; request for public comment.
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SUMMARY: The Health Resources and Services Administration (HRSA) is
seeking comments from the public on its plan to institute a permanent
deviation from a policy in the Department of Health and Human Services
(HHS), Grants Policy Directive (GPD) 3.01 governing indirect cost
recovery for one of its grant programs. The GPD states ``HHS considers
activities conducted by grantees that result in indirect charges a
necessary and appropriate part of HHS grants, and HHS awarding offices
must reimburse their share of these costs.'' Although HRSA typically
reimburses grantees for their full share of administrative overhead
represented in approved indirect cost rates, the agency believes, in
the case of its State Offices of Rural Health (SORH) Grant Program,
that full recovery of overhead expenditures would be detrimental to the
SORH grantees' ability to adequately conduct all the activities
mandated in the authorizing legislation. Limiting indirect cost
recovery is necessary because eleven of fifty SORH grantees are located
in academic settings that have established indirect cost rates in the
range of 30 to 50 percent or even higher. It is in the best interest of
the program to limit the indirect cost recovery to not more than 15
percent of allowable total direct costs, thus leaving 85 percent of the
grant funds to conduct the activities required by the grant program.
This limitation would be applicable to all awardees of the State
Offices of Rural Health Grant Program.
DATES: If you wish to comment on any portion of this notice, HRSA must
receive comments by February 14, 2008.
ADDRESSES: You may submit comments by any of the following methods:
E-mail: kmidberry@hrsa.gov. Include ``State Offices of
Rural Health Grant Program'' in the subject line of the message.
Mail: Keith Midberry, Office of Rural Health Policy,
Health Resources and Services Administration (HRSA), 5600 Fishers Lane,
Room 9A-42, Rockville, MD 20857.
Hand Delivery/Courier: Keith Midberry, Office of Rural
Health Policy, Health Resources and Services Administration (HRSA),
5600 Fishers Lane, Room 9A-42, Rockville, MD 20857.
Docket: For access to the docket to read background documents or
comments received, go to the Office of Rural Health Policy, Health
Resources and Services Administration (HRSA), 5600 Fishers Lane, Room
9A-42, Rockville, Maryland, 20857, weekdays between the hours of 8:30
a.m. and 5 p.m. To schedule an appointment to view public comments,
phone (301) 443-2669.
FOR FURTHER INFORMATION CONTACT: Keith Midberry, at the above address,
telephone number 301-443-2669.
SUPPLEMENTARY INFORMATION: The HRSA State Offices of Rural Health
(SORH) Grant Program is authorized by Section 338J of the Public Health
Service Act (42 U.S.C. 254r). The purpose of the SORH grant program is
to assist States in strengthening their rural health care delivery
systems by helping to support a focal point for rural health within
each State. The program provides funding for an institutional framework
that links rural hospitals, providers and communities with State and
Federal resources to help develop long term solutions to rural health
problems. The law provides for a Federal-State partnership, requiring a
State funding match of $3 for each $1 of Federal funding. Over the past
16 years, this program has leveraged in excess of $175 million in State
matching funds for rural health. The average annual award for each
State is $150,000.
The SORH program issues one award to a single grantee from each of
the 50 States. The law requires that the governor designate the entity
that will serve as the State's SORH. Currently, 37 of the Offices are
located in State health departments, 10 in academic settings (9
universities and 1 junior college) and 3 are non-profit organizations.
Grant funds enable each State grantee to conduct the following
activities:
(1) Establish and maintain within the State a clearinghouse for
collecting and disseminating information on--
(A) Rural health care issues;
(B) Research findings relating to rural health care; and
(C) Innovative approaches to the delivery of health care in rural
areas;
(2) Coordinate the activities carried out in the State that relate
to rural health care, including providing coordination for the purpose
of avoiding duplication in such activities;
(3) Identify Federal, State, and nongovernmental programs regarding
rural health, and provide technical assistance to public and nonprofit
private entities regarding participation in such programs;
(4) Encourage, but not directly fund, the recruitment and retention
of health professionals in rural areas; and
(5) Assist in strengthening State, local and Federal partnerships
in rural health.
Since 2001, SORH grant guidance has limited indirect cost recovery
to not more than 15 percent of the Federal award regardless of whether
the grantee has a higher negotiated rate agreement. The grant program
initiated this limitation on the recoverable indirect costs because
some grantees are located within universities that have established
indirect cost rate agreements in the range of 30 to 50 percent. In
adhering to the existing GPD policy, as much as 50 percent of grants
funds could be consumed for administrative and other purposes by the
host institution, which would significantly reduce the amount of funds
available to carry out the objectives of the authorizing legislation
and grant program. Maintaining an indirect cost limitation will enable
awardees to continue to invest 85 percent (or more) of their grant
funds for activities that help improve health care in rural
communities. Not restricting indirect cost recovery would reduce the
amount of funds available to improve rural health care and erode
sixteen years of SORH success.
To maintain the limit on indirect costs in the 2008 grant funding
opportunity guidance, a request to deviate from the Department of
Health and Human Services (DHHS) Grants Policy Directive (GPD) 3.01,
Indirect Costs and Other Cost Policies was required. Such a request was
submitted and approved by the HHS, Office of Grants Policy, Oversight
and Evaluation, Assistant Secretary for Resources and Technology in
November, 2007.
Public Comment
HRSA invites public comment on its intent to indefinitely limit
indirect cost recovery to not more than 15 percent of the total
allowable direct costs for awardees of the State Offices of Rural
Health Grant Program.
Dated: January 7, 2008.
Elizabeth M. Duke,
Administrator.
[FR Doc. E8-551 Filed 1-14-08; 8:45 am]
BILLING CODE 4165-15-P