ACH CEO Amanda Pears Kelly was interviewed by Modern Healthcare to discuss how the federal government shutdown is affecting segments of the healthcare system—particularly community health centers.
She told reporter Michael McAuliff that a gap in federal funding will worsen their financial strain because “They don’t have backup dollars,” and most health centers don’t have enough cash to sustain for 30 days without new funding.
Most federally qualified health centers barely break even, Pears Kelly said. “They operate on 1%-2% margins. Many of them are even in the red,” she said.
While community health centers will still get reimbursements from Medicaid, Medicare and private insurers, direct federal funding typically accounts for about 15% of the money coming in, said Pears Kelly.
The current federal funding problems are exacerbated because community health centers haven’t received funding boosts in several years, even as costs rise, making it difficult for them to plan ahead, build and sustain their workforces, and borrow money, she explained.
She warns that “the ripple effect is pretty catastrophic.”