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Pennsylvania Health Centers Request $50 Million for Care

A community health center providing services to underserved populations in Pennsylvania.

News Summary

The Pennsylvania Association of Community Health Centers (PACHC) is seeking $50 million in state funding for the 2024-25 budget. This funding aims to support uninsured patients and address rising operational costs affecting community health centers across the state. With nearly one million patients relying on these centers, the absence of state support could jeopardize vital health services, highlighting the urgent need for financial assistance to ensure continued access to healthcare.

Pennsylvania — The Pennsylvania Association of Community Health Centers (PACHC) is requesting $50 million in funding from the state government for the 2024-25 budget to support care for uninsured patients and to cope with rising operational costs. If granted, this funding would play a significant role in maintaining the viability of critical health services within the state.

Across Pennsylvania, community health centers offer essential services to nearly one million patients, many of whom come from low-income backgrounds or lack health insurance. Currently, about 13.95% of these patients are uninsured, a number projected to increase following the termination of expanded Medicaid benefits known as Medicaid Unwinding. The PACHC highlights that the absence of state support would severely undermine the sustainability of vital health services, including primary care, behavioral health, dental care, and care coordination, particularly in underserved communities.

PACHC operates as the largest network of primary care providers in Pennsylvania, encompassing 55 counties and over 475 sites. The statistics reveal that one in 13 Pennsylvanians relies on community health centers as their primary healthcare home, with a high percentage—around 87.54%—of patients living at or below 200% of the federal poverty level. Additionally, a sizable 48.28% of patients utilize programs such as Medicaid or the Children’s Health Insurance Program (CHIP).

Financial challenges for these health centers continue to escalate. These facilities are grappling with lowering profit margins and heightened costs, struggling to cover the expenses incurred in treating uninsured patients and grappling with inadequate reimbursement levels from Medicaid. Contributing to these financial strains are increased prices for goods and services, along with diminished revenue from the 340B Drug Savings Program, which is integral to the operation of many health centers.

Currently, Pennsylvania’s community health centers employ over 5,300 full-time staff, highlighting their role as a crucial component of the state’s healthcare workforce. To further bolster recruitment, programs such as the Pennsylvania Primary Care Loan Repayment Program assist healthcare professionals entering underserved areas by providing funding for loan repayment in return for service. Another initiative, the Pennsylvania Primary Care Career Center, collaborates with the state’s Department of Health to pair healthcare professionals with organizations that offer primary care services.

While PACHC expresses appreciation for the existing support programs from the state, it is essential for continuous funding for these programs to ensure workforce initiatives remain viable. The significant funding request is rooted in a pressing necessity; without the necessary support, PACHC forecasts a risk to the capacity to provide over 3.6 million patient visits per year, fundamentally impacting healthcare access for many of Pennsylvania’s most vulnerable residents.

The request for $50 million underscores not only the financial distress experienced by these health centers but also the fundamental role they play in the state’s healthcare landscape. As discussions related to the 2024–25 state budget unfold, the future of community health services in Pennsylvania hangs in the balance, calling for urgent attention to meet the healthcare needs of its citizens.