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Other Programs
Health Education and Assistance Loans (HEAL)
# |
Key Outcomes |
FY 2005
Actual |
FY 2006
Actual |
FY 2007
Target |
FY 2007
Actual |
FY 2008
Target |
FY 2008
Actual |
FY 2009
Target |
Long-Term Objective: Achieve Excellence in Management |
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9.VII.C.1 |
Conduct an orderly phase-out of the outstanding loan portfolio, resulting in a reduction in the Federal liability associated with the HEAL program (balance in the portfolio, dollars in $000’s). |
$1,709 |
$1,375 |
$1,090 |
$1,131 |
$997 |
$980 |
$866 |
# |
Key Outputs |
FY 2005
Actual |
FY 2006
Actual |
FY 2007
Target |
FY 2007
Actual |
FY 2008
Target |
FY 2008
Actual |
FY 2009
Target |
Efficiency Measure |
9.E |
Improve claims processing efficiency through implementation of an online processing system (HOPS). (Avg. number of days to process claim) |
9 days |
8 days |
8 days |
8 days |
8 days |
11 days |
8 days |
INTRODUCTION
The Health Education Assistance Loans (HEAL) program’s performance measures and activities build upon HRSA’s long-range goal to “Achieve Excellence in Management” and are keyed to the following HRSA Objective:
- Preserve the financial integrity of HRSA’s programs and activities.
Performance measure information is used by the program to assess the success of HEAL in meeting goals of conducting an orderly phase-out of HEAL’s outstanding loan portfolio and thus reducing Federal liability associated with the HEAL program. Strategies used to improve performance include providing borrowers who have not yet fully repaid their loans with appropriate assistance to facilitate the repayment of their loans, working with lenders and loan holders to minimize defaults, and aggressively pursuing HEAL defaulters.
DISCUSSION OF RESULTS AND TARGETS
9.VII.C.1. Conduct an orderly phase-out of the outstanding loan portfolio, resulting in a reduction in the Federal liability associated with the HEAL program.
The HEAL program is currently phasing out an outstanding loan portfolio of approximately $980 million as of September 30, 2008. The program has historically met or exceeded its targets for phasing out the outstanding loan portfolio, through initiatives to help borrowers manage their indebtedness, and through partnerships with lenders and loan holders. In FY 2007, the projection of $1.090 billion was not able to be met due to the historical downward trend of HEAL loans that refinanced out of the program and borrowers that paid-in-full turned out to be lower than anticipated. In FY 2008, the target was met and slightly exceeded by $17 million in loans. This was primarily due to the target being adjusted for the historical trend. The FY 2009 target is $886 million. However, target projections are difficult to determine when the economy and banking industry are in flux with direct results to students refinancing and paying off loans.
9.E. Improve claims processing efficiency through implementation of an online processing system (HOPS).
The efficiency measure for the HEAL program is to improve claims processing efficiency through the implementation of an online processing system. In FY 2004 and FY 2005, the processing time was 10 days and 9 days, respectively. Processing time was reduced to 8 days in FY 2006, which was lower than the target. The target of 8 days was met in FY 2007 but, in FY 2008, the target of 8 days was not met. It took 11 days on average to process claims, because there were management changes and other reduction in staff that resulted in the workload of claims specialists to increase. It is believed that the FY 2008 result was an anomaly, thus the FY 2009 target remains 8 days.
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