Title III, SEC. 3421. GRANTS AND CONTRACTS FOR DEVELOPMENT OF PLANS AND NETWORKS. (a) In General. The Secretary may make grants to and enter into contracts with consortia of public or private health care providers for the development of qualified community health plans and qualified community practice networks. For purposes of this subtitle, the term ``qualified community health group'' means such a health plan or such a practice network. (b) Qualified Community Health Plans. For purposes of this subtitle, the term ``qualified community health plan'' means a health plan that meets the following conditions: (1) The health plan is a public or nonprofit private entity whose principal purpose is, with respect to the items and services included in the comprehensive benefit package under title I, to provide each of such items and services in one or more health professional shortage areas or to provide such items and services to a significant number of individuals who are members of a medically underserved population. (2) The health plan is a participant in one or more health alliances. (3) Two or more of the categories specified in subsection (d) are represented among the entities providing health services through the health plan. (c) Qualified Community Practice Networks. For purposes of this subtitle, the term ``qualified community practice network'' means a consortium of health care providers meeting the following conditions: (1) The consortium is a public or nonprofit private entity whose principal purpose is the purpose described in subsection (b)(1). (2) The consortium has an agreement with one or more health plans that are participating in one or more health alliances. (3) The participation of health care providers in the consortium is governed by a written agreement to which each of the participating providers is a party. (4) Two or more of the categories described in subsection (d) are represented among the entities participating in the consortium. (d) Relevant Categories of Entities. For purposes of subsections (b)(3) and (c)(4), the categories described in this subsection are the following categories of entities: (1) Physicians, other health professionals, or health care institutions that provide health services in one or more health professional shortage areas or provide such services to a significant number of individuals who are members of a medically underserved population, and that do not provide health services under any of the programs specified in paragraphs (2) through (7) or as employees of public entities. (2) Entities providing health services under grants under sections 329 and 330 of the Public Health Service Act. (3) Entities providing health services under grants under sections 340 and 340A of such Act. (4) Entities providing health services under grants under section 1001 or title XXIII of such Act. (5) Entities providing health services under title V of the Social Security Act. (6) Entities providing health services through rural health clinics and other federally qualified health centers. (7) Entities providing health services in urban areas through programs under title V of the Indian Health Care Improvement Act, and entities providing outpatient health services through programs under the Indian Self-Determination Act. (8) Programs providing personal health services and operating through State or local public health agencies. (e) Rule of Construction. The consortia to which the Secretary may make an award of financial assistance under subsection (a) for the development of qualified community practice networks include any health plan that participates in one or more health alliances, without regard to whether the health plan is a qualified community health plan. (f) Service Area. In making an award of financial assistance under subsection (a), the Secretary shall designate the geographic area with respect to which the qualified community health group involved is to provide health services. A funding agreement for such an award is that the qualified community health group involved will provide such services in the area so designated. (g) Definitions. For purposes of this subtitle: (1) The term ``health professional shortage areas'' means health professional shortage areas designated under section 332 of the Public Health Service Act. (2) The term ``medically underserved population'' means a medically underserved population designated under section 330 of the Public Health Service Act. (3) The term ``rural health clinic'' has the meaning given such term in section 1861(aa)(2) of the Social Security Act. (4) The term ``federally qualified health centers'' has the meaning given such term in section 1861(aa)(4) of the Social Security Act. (5) The term ``service area'', with respect to a qualified community health group, means the geographic area designated under subsection (g). (6) The term ``funding agreement'', with respect to an award of financial assistance under this section, means that the Secretary may make the award only if the applicant for the award makes the agreement involved. (7) The term ``financial assistance'', with respect to awards under subsection (a), means a grant or contract.