Signatories from health care organizations in all 50 states, representing over 11 million health center patients, emphasized the crucial necessity for maximum health center funding to address unprecedented challenges.
WASHINGTON—Advocates for Community Health (ACH), a membership organization for federally qualified health centers working to advance forward-thinking health policies, led over 550 health care organizations in urging Congress to reauthorize the Community Health Center Fund (CHCF) in an end-of-year funding package, at a minimum of $5.8 billion per year for at least three years. In a letter delivered to Congressional leaders today, national, state, and local organizations representing all 50 U.S. states and territories outlined the critical need for a robust funding increase for the CHCF, which is set to expire on December 31, 2024, to meet the record-breaking patient volumes and unprecedented financial challenges that health centers are facing.
The signers of the letter expressed concerns about the insufficient federal funding to address the increasing needs of communities amidst mental health, substance abuse, and maternal health crises, as well as local emergencies like hurricanes, wildfires, and tornadoes. While acknowledging a recent short-term funding increase, the group emphasized the importance of a long-term reauthorization, which has not been enacted since 2019. This letter follows a recent report, released by the Milken Institute School of Public Health at the George Washington University, which projects that a substantial majority of the nation’s nearly 1,400 community health centers are likely to experience significant losses in 2024 as the cost of operations and service delivery continues to outpace revenue.
ACH’s Chief Executive Officer Amanda Pears Kelly stressed that health centers are struggling to meet the rising demands of their communities with limited resources. “They simply can no longer do more with less and cannot operate in legislative cycles of uncertainty,” she said. “These actions have a severe and long-term impact on our nation’s communities, the hundreds of thousands of employees working in health centers, and the health and wellbeing of the patients they serve.”
The letter’s signers collectively request that Congress reauthorize the Community Health Center Trust Fund at the funding level requested in the Senate’s Bipartisan Primary Care and Health Workforce Act, S. 2840. As mandatory and discretionary funding for community health centers has remained relatively flat, health centers are also reeling from the perfect storm of crises on all fronts, ranging from the Medicaid redetermination process, extremely high inflation, an ongoing healthcare workforce shortage, and the continued erosion of 340B program savings. In addition, median operating margins for the nation’s community health centers stand at approximately one to three percent on average.
The Health Center Program is the nation’s largest primary care network, serving over 31 million patients in 2023, an increase of 2.7 million people since 2020, according to recent data from the Health Resources and Services Administration’s Health Center Program Uniform Data System. Of these patients, 90% had incomes at or below 200% of the federal poverty level, and health centers serve one in eight children.
Health centers ensure that individuals and families can access high-quality healthcare in their communities regardless of their ability to pay. “Not only do community health centers have a proven track record of quality, savings, accountability, and positive economic impact, they spur innovation to drive further savings and better health outcomes, all while responding to the localized needs of their community, “added Pears Kelly.
“The Health Center Program is a shining example of a vital federal investment with localized control and impact, as well as massive system-wide returns in improved health, economic development, and fewer health disparities in otherwise underserved communities.”
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About Advocates for Community Health
Advocates for Community Health (ACH) is a membership organization for federally qualified health centers that strives to advance the delivery of health care to underserved populations and to achieve health equity for patients and communities in need. We are committed to working collaboratively to advance well-defined and forward-thinking policies at the national level. By leveraging the wisdom, agility, and innovation of our members, ACH brings bold leadership to drive change in the American healthcare system. To learn more, visit advocatesforcommunityhealth.org.