Kentucky Council on Postsecondary Education

Healthcare Workforce Investment Fund

Kentucky, along with other states, recognized healthcare workforce shortages during the 2023 legislative session in part by establishing the Kentucky Healthcare Workforce Investment Fund, which is a public-private partnership to provide healthcare training scholarships for Kentucky resident students and incentives to reward performance and excellence among healthcare professional programs.

Key Elements

Administered by CPE, the fund

Guiding Legislation and Documentation

Healthcare Workforce Investment Fund Implementation Plan

HWIF Steering Committee Members

CPE Chair Madison Silvert appointed the members of the HWIF Steering Committee at their Nov. 17, 2023, meeting.  Members will serve a one-year term beginning March 1, 2024. 

Frequently Asked Questions

What is the Healthcare Workforce Investment Fund? 

The HWIF is a groundbreaking public/private partnership, created in Spring of 2023 by HB 200. The legislation shares responsibility between industry and government to carry out a dedicated mission - to cultivate a robust frontline healthcare workforce in Kentucky. Our core objectives are twofold: providing educational scholarships to students pursuing programs targeting critical workforce needs in healthcare professions and recognizing and rewarding excellence among Kentucky healthcare professional education and training programs. 

Who is responsible for administering the funds? 

The Kentucky Council on Postsecondary Education (CPE) is responsible for administering the funds. The Council will establish a steering committee for the purpose of advising on issues related to healthcare training scholarships, including determining funding allocations, defining partnership proposal criteria, and making awards. The steering committee is comprised of 10 members – healthcare industry (3), higher education institutions (3), government organization (3), and KY CPE (1). 

Who is eligible for the funds? 

In 13 KAR 5:010, an “eligible entity” means an entity that offers a healthcare program. As long as the entity offers the program and the credential received upon completion of the program allows the graduate to be eligible for licensure (which often includes sitting for an exam), then it is eligible to partner with a healthcare provider in a proposal to receive scholarship funding.   

How does the dollar-for-dollar match work? 

The fund may accept gifts or donations restricted by a healthcare partner grantor with all monies gifted or donated to the fund to be matched, dollar for dollar, by General Fund disbursements for the establishment of scholarships and/or educational program incentives.

When will the Council begin accepting proposals? 

Applications for healthcare training scholarship partnership awards will open on July 1, 2024. The application will close on August 15, 2024, and all awards will be made by September 13, 2024. 

At this time, CPE is unable to accept incentive fund applications. If incentive funds become available, CPE will release a request for applications.

How will funding priorities be determined? 

Healthcare Training Scholarships

Healthcare Program Incentives

Can you please explain the employment restriction outlined in Section 9b of KRS 164.0403?

KRS 164.0403(6) states the following:  A healthcare training scholarship issued by a healthcare program pursuant to a partnership contract shall be made directly to a recipient pursuant to a written scholarship contract between the recipient and the healthcare program. The scholarship contract shall not restrict the recipient's ability to utilize the scholarship for the total cost of attendance. Each recipient of a scholarship shall:

Section (7) also allows restrictions to be placed in the contract requiring the recipient to meet the practice obligations at the employer healthcare provider (except as outlined in Section (9) which applies to those participating in the state registered nursing aid training and competency evaluation program). 

Minus the one caveat mentioned above, the scholarship recipients must work in the profession in which their program leads to certification for each year of the scholarship, not to exceed 2 years, and may be required to complete that obligation with the healthcare provider.  This would be after completion of the program because the student would not be able to practice in that profession until they complete the program. 

When do the dollars need to be used by? 

The money can be used up until FY 2029-2030. Any dollars that remain unused will be returned on a pro rata basis to each healthcare partner and to the General Assembly (see below). This is technically 50/50, but I don't want your words to be misconstrued. So, although upfront the contract between CPE, the healthcare partner, and the healthcare program will be on a one-year basis, the contract can be renewed up until FY 2029-2030 if the funds that were awarded are still being used to award scholarships. The reporting requirements that selected entities will be subject to will help CPE monitor the balance of the awarded funds. 

Note from KRS 164.0402 

(b) Notwithstanding KRS 45.229, any moneys appropriated to the fund by the General Assembly remaining in the fund at the end of any fiscal year prior to the 2029-2030 fiscal year shall not lapse.

(c) Any moneys appropriated to the fund by the General Assembly remaining in the fund at the end of the 2029-2030 fiscal year shall be forfeited and shall lapse to the general fund.

(d) Any moneys contributed by grantors remaining in the fund at the end of the 2029-2030 fiscal year shall be returned to each grantor proportionally based on the amount donated by the grantor in relation to the total amount donated by all grantors.

What is the minimum scholarship amount that can be offered to students?

The statute speaks to the service requirement for “each academic year funded by the scholarship” which implies that a scholarship would cover at least the full cost of tuition for the time enrolled, but could be up to the total cost of attendance. Other grant aid may be considered when determining the amount of the scholarship provided to cover the gap in unmet need.

Can the scholarships stack with other awards and does it matter if it is a last dollar or first dollar scholarship award? 

In KRS 164.0403, it states “(6)….The scholarship contract shall not restrict the recipient’s ability to utilize the scholarship for the total cost of attendance…” Whether the scholarship is used as a last dollar or first dollar scholarship is up to how the institution enters the award. 

If a student defaults on their contract, who is responsible for holding the student accountable to repay their scholarship? 

Since through KRS 164.0403 the funds are held by the healthcare program and the scholarship contract will be between the student and the healthcare program, it will be up to the healthcare program to hold the student accountable. Per the promissory note, the healthcare program/institution will be obligated to get the student to repay their scholarship and the funds will return to the HWIF scholarship award pool.

For more information about healthcare workforce initiatives, contact Michaela Mineer at michaela.mineer@ky.gov. 

Last Updated: 11/1/2024