Creating the specialty practice student loan program and the specialty practice student loan repayment fund, allowing for the transfer of funds from the OBGYN and psychiatry medical student loan repayment funds to the specialty practice student loan repayment fund and abolishing the OBGYN and psychiatry medical student loan repayment funds.

HB 2374 establishes a new specialty practice student loan repayment program by consolidating existing funds from the OBGYN and psychiatry medical student loan repayment programs (which are abolished) into a single specialty fund. The University of Kansas School of Medicine will administer the program, offering loan repayment to medical students who commit to practicing in approved specialties - such as gynecology, general psychiatry, or other specialties designated by the chancellor - in designated service areas like rural communities or state medical facilities. The bill requires the university to annually report changes to eligible specialties and service areas based on workforce needs, population data, and community needs. This reorganization reallocates existing state funds without creating new spending to address healthcare workforce shortages in underserved regions.