Community health centers left in limbo as funding deadline looms
Skip to main content
MDHC_Logotype_white
Subscribe
  • My Account
  • Login
  • Subscribe
  • News
    • This Week's News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • People
    • Regional News
    • Digital Edition
    • Biden's early approach to virus: Underpromise, overdeliver
       Alan B. Miller
      Looking ahead with optimism as we continue to transform healthcare
      Cable news and the gender gap
      An older man wearing a mask receiving a vaccine.
      Want more diversity in clinical trials? Start with the researchers
    • Biden's early approach to virus: Underpromise, overdeliver
      An older man wearing a mask receiving a vaccine.
      Want more diversity in clinical trials? Start with the researchers
      A phone screen showing the question, "Mary we hope this information was helpful and we'd like to keep guiding you. Are you interested in knowing when it's your turn to receive the vaccine?"
      Chatbots, texting campaigns help manage influx of COVID vax questions
      Dr. Karen DeSalvo
      Next Up Podcast: What to expect with telehealth and healthcare technology in the next 4 years
    • Health suffers as rural hospitals close
      Medicare ACO participants fell in 2021
      Louisiana gets reports vaccine providers are discriminating
      'We know this is real': New clinics aid virus 'long-haulers'
    • Last-minute COVID costs cut into UnitedHealthcare's $396 million operating income
      CMS approves rule forcing insurers to ease prior authorization
      COVID-19 still a big uncertainty for insurers in 2021
      Health insurers' outlook boosted after Dems' Georgia win
    • It's a secret: California keeps key virus data from public
      lacewell_linda_supertinendent_dept_of_financial_services_8.47.jpg
      New York state investigates drug price spikes during pandemic
      Health experts blame rapid expansion for vaccine shortages
      HHS freezes rule targeting community health centers' drug discounts
    • By the Numbers: 20 largest healthcare investment banks in 2020
      Providers await new HHS coronavirus grant reporting deadline
      Operation Warp Speed Dr. Moncef Slaoui, Pfizer Group President Angela Hwang, Moderna CEO Stephane Bancel, CVS Health Executive Vice President Karen Lynch and McKesson CEO Brian Tyler participate in a panel discussion on the COVID-19 vaccine.
      Hospitals, drug companies strive to stand out virtually at JPM
      Intermountain, Trinity, Memorial Hermann behind $300M private equity fund
    • Dr. Karen DeSalvo
      Next Up Podcast: What to expect with telehealth and healthcare technology in the next 4 years
      Next Up Podcast: What to expect with telehealth and healthcare technology in the next 4 years - Transcript
      A man in a room with servers.
      Momentum grows to outsource hospital tech functions in 2021
      5 things to know about Google's $2.1B Fitbit acquisition
    • An older man wearing a mask receiving a vaccine.
      Want more diversity in clinical trials? Start with the researchers
      Avocado
      Avocado a day keeps the doctor away
      50% of Americans make resolutions. Fewer than 27% keep them over time.
      Data Points: Sticking with your resolutions
      U.K. chief scientist says new virus variant may be more deadly
    • Cerner names Erceg as new CFO
      Elizabeth Richter will serve as acting CMS administrator
      Providence names new chief financial officer
      Wisconsin's top health official departing for federal job
    • Midwest
    • Northeast
    • South
    • West
  • Insights
    • ACA 10 Years After
    • Best Practices
    • InDepth Special Reports
    • Innovations
    • The Affordable Care Act after 10 years
    • New care model helps primary-care practices treat obesity
      doctor with patient
      COVID-19 treatment protocol developed in the field helps patients recover
      Rachel Wyatt
      Project to curb pressure injuries in hospitals shows promise
      Yale New Haven's COVID-19 nurse-staffing model has long-term benefits
    • Modern Healthcare InDepth: Breaking the bias that impedes better healthcare
      Videos: Healthcare industry executives describe their encounters with racism
      Michellene Davis
      Healthcare leadership lacks the racial diversity needed to reduce health disparities
      Dr. James Hildreth
      How medical education can help fight racism
      Quotes from rebadged employees
      Outsourcing IT, revenue cycle takes toll on internal culture
    • A phone screen showing the question, "Mary we hope this information was helpful and we'd like to keep guiding you. Are you interested in knowing when it's your turn to receive the vaccine?"
      Chatbots, texting campaigns help manage influx of COVID vax questions
      A woman with a wearable sensor talking to her provider.
      Wearable sensors help diagnose heart rhythm problems in West Virginia
      self service station
      COVID-19 pushes patient expectations toward self-service
      Targeting high-risk cancer patients with genetics
  • Transformation
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Highmark Health inks six-year cloud, tech deal with Google
      Study: 1 in 5 patients report discrimination when getting healthcare
      HHS proposes changing HIPAA privacy rules
      Android health records app launches at 230 health systems
    • California hospitals prepare ethical protocol to prioritize lifesaving care
      Amazon, JPMorgan Chase, Berkshire Hathaway disband Haven
      Digital pathways poised to reshape healthcare continuum in 2021
      Healthcare was the hardest hit by supply shortages across all U.S. industries
    • A phone screen showing the question, "Mary we hope this information was helpful and we'd like to keep guiding you. Are you interested in knowing when it's your turn to receive the vaccine?"
      Chatbots, texting campaigns help manage influx of COVID vax questions
      A woman with a wearable sensor talking to her provider.
      Wearable sensors help diagnose heart rhythm problems in West Virginia
      New care model helps primary-care practices treat obesity
      How hospitals are building on COVID-19 telehealth momentum
    • Regional insurers bet big on virtual-first plans
      MedPAC votes to boost hospital payments, freeze or cut other providers
      Most Next Gen ACOs achieved bonuses in 2019
      Congress recalibrates Medicare Physician Fee Schedule after lobbying
  • Data/Lists
    • Rankings/Lists
    • Interactive Databases
    • Data Points
    • Health Systems Financials
      Executive Compensation
      Physician Compensation
  • Op-Ed
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
    • Wellstar CEO calls adapting for the pandemic her bold move
      Howard P. Kern
      Recognizing the value of telehealth in its infancy
      Dr. Stephen Markovich
      A bold move helped take him from family doctor to OhioHealth CEO
      Dr. Bruce Siegel
      Why taking a hospital not-for-profit was Dr. Bruce Siegel’s boldest move
    • Barry Ostrowsky
      Ending racism is a journey taken together; the starting point must be now
      Laura Lee Hall and Gary Puckrein
      Increased flu vaccination has never been more important for communities of color
      John Daniels Jr.
      Health equity: Making the journey from buzzword to reality
      Mark C. Clement and David Cook
      We all need to 'do something' to fight inequities and get healthcare right, for every patient, every time
    •  Alan B. Miller
      Looking ahead with optimism as we continue to transform healthcare
      Dr. Bruce Siegel
      By protecting the healthcare safety net, Biden can put us on the path to a stronger country
      Healing healthcare: some ideas for triage by the new Congress, administration
      Dr. Sachin H. Jain
      Medicare for All? The better route to universal coverage would be Medicare Advantage for All
    • Letters: Eliminating bias in healthcare needs to be ‘deliberate and organic’
      Letters: Maybe dropping out of ACOs is a good thing for patients
      Letters: White House and Congress share blame for lack of national COVID strategy
      Letters: VA making strides to improve state veterans home inspections
    • Sponsored Content Provided By Optum
      How blockchain could ease frustration with the payment process
      Sponsored Content Provided By Optum
      Three steps to better data-sharing for payer and provider CIOs
      Sponsored Content Provided By Optum
      Reduce total cost of care: 6 reasons why providers and payers should tackle the challenge together
      Sponsored Content Provided By Optum
      Why CIOs went from back-office operators to mission-critical innovators
  • Awards
    • Award Programs
    • Nominate
    • Previous Award Programs
    • Other Award Programs
    • Best Places to Work in Healthcare Logo for Navigation
      Nominations Open - Best Places to Work in Healthcare
      Nominations Open - Health Care Hall of Fame
      Nominations Open - 50 Most Influential Clinical Executives
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Top 25 Minority Leaders
    • Top 25 Women Leaders
    • Excellence in Nursing Awards
    • Design Awards
    • Top 25 COOs in Healthcare
    • 100 Top Hospitals
    • ACHE Awards
  • Events
    • Conferences
    • Galas
    • Webinars
    • COVID-19 Event Tracker
    • Leadership Symposium
    • Healthcare Transformation Summit
    • Women Leaders in Healthcare Conference
    • Workplace of the Future Conference
    • Strategic Marketing Conference
    • Social Determinants of Health Symposium
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Minority Leaders Gala (2022)
    • Top 25 Women Leaders Gala
  • Listen
    • Podcast - Next Up
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
    • Dr. Karen DeSalvo
      Next Up Podcast: What to expect with telehealth and healthcare technology in the next 4 years
      Carter Dredge
      Next Up Podcast: Ready, set, innovate! Innovation and disruption in healthcare
      Next Up Podcast: COVID-19, social determinants highlight health inequities — what next?
      Ceci Connolly
      Next Up Podcast: How to navigate the murky post-election waters
    • Beyond the Byline: Regulators aim to boost value push with fraud and abuse law updates
      An older man wearing a mask receiving a vaccine.
      Beyond the Byline: Verifying information on the chaotic COVID-19 vaccine rollout
      doctor burnout
      Beyond the Byline: How healthcare supply chain struggles contribute to employee burnout
      Beyond the Byline: Covering race and diversity in the healthcare industry
    • Leading intention promote diversity and inclusion
      Introducing Healthcare Insider Podcast
    • The Check Up: Chip Kahn
      The Check Up: Chip Kahn of the Federation of American Hospitals
      The Check Up: Trenda Ray
      The Check Up: Trenda Ray of the University of Arkansas for Medical Sciences
      The Check Up: Dr. Kenneth Davis
      The Check Up: Dr. Kenneth Davis of Mount Sinai Health System
      The Check Up: Dr. Thomas McGinn
      The Check Up: Dr. Thomas McGinn of CommonSpirit Health
    • Video: Ivana Naeymi Rad of Intelligent Medical Objects
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Government
September 21, 2017 01:00 AM

Community health centers left in limbo as funding deadline looms

Steven Ross Johnson
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Reena Rose Sibayan
    President and Chief Executive Officer Joan Quigley speaking at the Hoboken Health Center reopening after damage from Hurricane Sandy.

    The financial uncertainty that often comes with working in healthcare is nothing new to Joan Quigley, a 30-year veteran hospital administrator who is currently president and CEO of North Hudson Community Action Corp., one of New Jersey's largest networks of federally qualified health centers.

    Yet as Quigley and her colleagues at other federally qualified health centers wait for Congress to re-authorize the Community Health Center Fund, which accounts for nearly 20% of the facilities' revenue, there's an unease that she can't shake.

    In 2015, Congress voted to re-authorize the CHC fund just months before it expired.

    This year the funding expires on Sept. 30, and there's hardly been mention of it despite the program previously enjoying bipartisan support.

    "I don't think Congress is out to get us, I think they just forgot about us," Quigley said. "We just kind of took it for granted that they love us, so they'll fund us. Then all of a sudden we realized that that might not happen."

    Garnering the most attention in D.C. has been the Republican effort to repeal and replace the Affordable Care Act. That also has a deadline at the end of this month. Congress only has a few weeks to pass a bill with just 50 votes, thus bypassing a Democratic filibuster.

    That's left federally qualified health centers more than nervous.

    "The level of anxiety rises with each passing day," said Dan Hawkins, senior vice president for public policy and research at the National Association of Community Health Centers.

    In the past, providers simply had to make the case that as providers to some of the poorest and more vulnerable communities, they were essential. Now, CHC providers can't even get a moment with lawmakers before their time runs out.

    About $3 million of North Hudson's annual budget of $32 million comes from the federal grant funding program, Quigley said. The loss of that revenue would likely result in North Hudson cutting hours or operations.

    The CHC Fund has been the catalyst behind a rapid expansion by community health centers over the past few years. Between 2010 and 2016, money from the fund has helped increase the number of health centers throughout the country by 22%, expand the number of health center sites by 50%, and increase the number of patients served by nearly 30%, from 19.5 million to more than 25 million, according to a report released this week by researchers at George Washington University. Currently there are more than 1,300 federally funded health centers operating more than 10,000 sites across the U.S.

    The report found allowing the CHC Fund to expire would amount to a cut of $3.6 billion in health center funding in fiscal 2018. Such a decrease would result in the loss of 51,000 health center jobs, and as many as 9 million patients—or more than one-third of the current population who use community health centers—would lose access to such services.

    Report co-author Sara Rosenbaum, founding chairwoman of the health policy department at George Washington University's Milken Institute School of Public Health, said community health centers are more dependent on federal funding to offset their costs because they serve a disproportionate number of low-income and medically underserved patients who are unable to pay out-of-pocket expenses like those who visit a physician's private practice.

    "When you look at a standard physician's practice, a big chunk of their revenue is actually out-of-pocket payments," Rosenbaum said. Estimates indicate patient payments make up of roughly 20% of revenue at physician practices. Rosenbaum said just 4% of community health center revenue comes from payments by patients. "That piece is completely missing in the world of community health centers."

    Even as the insured rate has climbed with the aid of subsidies for private health plans and the expansion of Medicaid through the ACA, nearly a quarter of community health center patients still are uninsured, compared to 9% of the general population, according to research by the Kaiser Family Foundation.

    Rosenbaum and others felt an elimination of the CHC Fund—combined with the loss of the Medicaid expansion and ACA marketplace subsidies if the latest GOP health bill is enacted—would have catastrophic consequences for health centers. Nearly half of community health center patients are covered by Medicaid. The program made up 43% of the more than $23 billion in revenue that health centers generated in 2016.

    "If health centers experienced instead of a 15 percentage point drop in their funding, basically half their funding, they would close their doors," Rosenbaum said.

    Even the loss of the CHC Fund alone would mark a major funding blow for many community health centers, especially among those providers in non-Medicaid expansion states. Many health centers in states where Medicaid was expanded to cover all adults earning up to 138% of the federal poverty level have used money from the CHC Fund to branch out with either new site locations or services, such as dental and heart clinics.

    But health centers in non-expansion states have been more reliant on the CHC Fund just to maintain their daily operations.

    "We're evaluating whether we're going to have to cut operations or what we're going to have to cut because we will have to cut something somewhere," said Katy Caldwell, CEO of Houston-based Legacy Community Health, a federally qualified health center that serves a patient population of more than 100,000 in the Houston area. She said the loss of the CHC Fund would be a big enough hit to Legacy's budget that cuts solely to the organization's administrative functions would not be enough to offset them, meaning some of their clinical services would also be affected. "A lot of it (the CHC Fund) we use for our general operations to care for people who are uninsured."

    Earlier this month a bill was introduced in the House to extend funding for the Community Health Center Fund for five years, but it has yet to be put on the legislative calendar for a vote. Meanwhile, many health centers are faced with hard decisions over whether to renew leases and reduce their workforce in the coming months as one of their main sources of funding remains uncertain.

    Congress also must renew by Sept. 30 the Children's Health Insurance Program, which provides healthcare coverage for more than 9 million kids from low-income households who earn too much to qualify for Medicaid. CHIP's deadline coincides with another priority, the renewal of the National Flood Insurance Program, which provides flood insurance for about 5 million. Funding for the program has received more attention recently in light of the devastation left behind by massive hurricanes that hit Gulf Coast states this summer.

    Nevertheless, Quigley, a former legislator herself, is optimistic that the program's bipartisan support will urge Congress to act before the deadline.

    "I spent 10 of my 18 years in the New Jersey state Assembly on the budget committee, so I know how things can change in a heartbeat," Quigley said.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    It's a secret: California keeps key virus data from public
    It's a secret: California keeps key virus data from public
    New York state investigates drug price spikes during pandemic
    New York state investigates drug price spikes during pandemic
    Sponsored Content
    Get Free Newsletters

    Sign up for free enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today

    The weekly magazine, websites, research and databases provide a powerful and all-encompassing industry presence. We help you make informed business decisions and lead your organizations to success.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS
    • Instagram

    Stay Connected

    Join the conversation with Modern Healthcare through our social media pages

    MDHC_Logotype_white
    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • This Week's News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition
    • Insights
      • ACA 10 Years After
      • Best Practices
      • InDepth Special Reports
      • Innovations
    • Transformation
      • Patients
      • Operations
      • Care Delivery
      • Payment
    • Data/Lists
      • Rankings/Lists
      • Interactive Databases
      • Data Points
    • Op-Ed
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Awards
      • Award Programs
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Top 25 Minority Leaders
        • Top 25 Women Leaders
      • Nominate
      • Previous Award Programs
        • Excellence in Nursing Awards
        • Design Awards
        • Top 25 COOs in Healthcare
      • Other Award Programs
        • 100 Top Hospitals
        • ACHE Awards
    • Events
      • Conferences
        • Leadership Symposium
        • Healthcare Transformation Summit
        • Women Leaders in Healthcare Conference
        • Workplace of the Future Conference
        • Strategic Marketing Conference
        • Social Determinants of Health Symposium
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Minority Leaders Gala (2022)
        • Top 25 Women Leaders Gala
      • Webinars
      • COVID-19 Event Tracker
    • Listen
      • Podcast - Next Up
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing