; and (2) applicants that agree, in hiring individuals to carry out activities funded under this section, to hire residents of the area or community where the activities will primarily occur, with higher priority among applicants described in this paragraph given based on the percentage of individuals to be hired from such area or community. (d) Distribution In selecting grant recipients under this section, the Secretary shall ensure that grants are distributed across urban and rural areas. (e) Federal privacy requirements Nothing in this section shall be construed to supersede any Federal privacy or confidentiality requirement, including the regulations promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996 ( Public Law 104–191 ; 110 Stat. 2033) and section 543 of the Public Health Service Act ( 42 U.S.C. 290dd–2 ). (f) Definitions In this section: (1) The term eligible entity means— (A) a Federally qualified health center (as defined in section 1861(aa) of the Social Security Act ( 42 U.S.C. 1395x(aa) )); (B) a school-based health clinic; (C) a disproportionate share hospital (as defined under the applicable State plan under title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq.) pursuant to section 1923(a)(1)(A) of such Act ( 42 U.S.C. 1396r–4 )); (D) an academic medical center; (E) a nonprofit organization (including any such faith-based organization); (F) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )); (G) a high school (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )); (H) any Tribal organization including the Indian Health Service and Native American servicing facilities