A bill to amend the Public Health Service Act to provide physician's services in physician-shortage areas through the establishment of a Physicians' Community Service Program.

Authorizes the Secretary of Health, Education and Welfare to make annual grants, in accordance with the provisions of this Act, to each school of medicine or osteopathy which has entered into an agreement under this Act for the improvement of the educational program of such school. Sets forth the formula for computing the amount of such grant and the contents of the above mentioned agreement.

States that the Secretary shall pay to each individual who is a participant: (1) the full regular tuition and fees imposed by the school; and (2) an annual stipend of $5,000. States that no individual shall be a participant under this Act until and unless he has entered into an agreement with the Secretary. Provides that any such agreement with any individual shall provide that such individual will, upon completion of his professional training, serve, as an employee of the Federal Government, for a period of threee years in any physician-shortage area to which he is assigned by the Secretary. Provides that an individual who fails to commence within a reasonable time to serve his three years will be obligated to pay $60,000 to the United States.

States that the Secretary shall, to the extent that they are available, assign at least two physician-participants to each physician-shrotage area, or a physician and a registered nurse to each such area. Provides that the Secretary shall provide for physician-participants assigned to any area such office space, equipment, and supplies as may be necessary to enable them to practice their profession in meeting the needs for primary care of the resident in such area. States that fees collected by any physician-participant shall be deposited in the Treasury.

Authorizes to be appropriated for each fiscal year such sums as may be necessary for the purpose of carrying out the provisions of this Act.