Limitations on elimination or reduction of class size by certain institutions; approval of Division; penalties

1. An institution that receives a grant through the Graduate Medical Education Grant Program established pursuant to NRS 232.49961 shall not eliminate or reduce the size of a program for residency training and postdoctoral fellowships operated by the institution without the approval of the Division. 2. To obtain the approval of the Division for the elimination or reduction of the size of a program for residency training and postdoctoral fellowships pursuant to subsection 1, an institution must apply to the Division in the form prescribed by the Division. The application must include, without limitation: (a) An analysis of the current and projected needs of patients in the geographic area served by the program, including, without limitation, the need for physicians who practice in any specialty in which the program provides residency training; (b) A detailed explanation of the reasons for the proposed elimination or reduction and justification of the elimination or reduction; and (c) A description of efforts to mitigate the impact of the elimination or reduction, which may include, without limitation, transferring resources to areas of higher need. 3. The Division shall not approve an application to eliminate or reduce the size of a program for residency training and postdoctoral fellowships submitted pursuant to subsection 2 unless the application demonstrates that the elimination or reduction: (a) Is justified by a decrease in the needs of patients in the geographic area served by the program, including, without limitation, the need for physicians who practice in any specialty in which the program provides residency training; and (b) Is not likely to negatively impact the overall availability of providers of health care in this State. 4. If an institution violates subsection 1, the Division may: (a) Suspend or revoke the grant awarded to the institution through the Graduate Medical Education Grant Program; or (b) Disqualify the institution from receiving future grants through the Graduate Medical Education Grant Program.