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Health center funding yields gains: study


By Jessica Zigmond
Posted: February 2, 2010 - 3:00 pm ET
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Investments in federally qualified health centers have improved available services to patients, including mental-health and substance-abuse treatment, as well as counseling and staffing, says a new report published in the journal Health Affairs.

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Study authors used information on federally qualified centers from 1996 through 2006 from the Uniform Data System, which is required for grantees of several primary-care system development programs that are administered by HHS' Bureau of Primary Health Care. According to the study, the number of federally qualified centers had increased to 1,200 in December 2007 from 750 centers in 2001. Meanwhile, federal funding also rose steadily, as these centers received about $550 million in 1990, about $925 million in 1999 and about $2 billion in 2007.

The study found that three sources of revenue—federal, state/local and private/foundation—all had a positive effect on the number of sites operated by a federally qualified health center, as each additional $1 million of federal grant support led to an additional 1.5 sites being opened by the center. The study also found that every additional $500,000 in federal grants translates into treatment for 540 more uninsured patients, which represents about a 10% increase, on average, for each center.

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