Community Health Centers Need Our Support

By Sarina Brady

Community health centers play a crucial role in our nation’s healthcare system, clearing obstacles that traditional healthcare often fails to overcome—including language barriers, insurance requirements, inaccessibility, and cost. These lifelines for underserved communities face challenges, however, that threaten their ability to meet increasing demand and provide desperately needed care to underserved communities. Federal legislators must take action to ensure the financial stability and growth of community health centers nationwide.

Community health centers care for over 30 million people each year, including the uninsured, publicly insured, low-income, rural residents, and members of racial and ethnic minority groups. By providing personalized medical services to these often overlooked community members, they foster trust and comfort while improving the health of our communities.

During the COVID-19 pandemic, community health centers served as a first line of defense, preventing virus spread and alleviating pressure on overwhelmed hospitals and emergency rooms. At our New Jersey-based community health center, I witnessed firsthand the transformative impact these centers have on our communities, with our center participating in the effort to vaccinate more than 100,000 members of the community.

From a purely economic standpoint, community health centers are a boon for our healthcare system and the nation. According to data from the Health Resources and Services Administration, they generate $85 billion annually in economic activity and save the health system $24 billion each year.

Despite their clear impact on public health and underserved populations, community health centers face financial challenges, with their two most significant sources of funding—Medicaid and the federal Community Health Center Fund (CHCF)—in dire need of additional resources. Medicaid enrollment growth has slowed year-over-year since 2022, and the Congressional Budget Office projects that states will receive $58 billion less in federal Medicaid outlays this year than in 2023. Meanwhile, inflation has outpaced CHCF funding by over 9% since 2015, straining the centers’ ability to provide care.

Beyond declines in funding, healthcare costs continue to grow at an alarming rate. The total accrued cost per patient grew from 2018 to 2022, from $990.17 to $1,339.02—an increase of over 35% in four years. This sharp rise reflects not only inflation and the increased costs of medical goods and services but also the growing complexity and demands of patient care.

Preserving these centers and ensuring funding and support is imperative for safeguarding public health, confronting healthcare disparities, and maintaining economic stability. Without sufficient investment, our nation will face significant declines in both health outcomes and the state of our economy.

Lack of access to community health centers could force individuals to resort to the emergency room—overburdening hospitals, raising healthcare costs, straining hospital resources, and creating longer wait times for patients experiencing true medical emergencies.

Health conditions will also worsen without access to proper care, leading to the spread of contagious diseases and higher long-term healthcare costs due to the absence of preventative and early intervention services that community health centers provide. This deterioration in health services will disproportionately affect minorities, immigrants, and underserved populations, further widening health disparities. Closing these centers would also result in unemployment for over 300,000 Americans, including veterans, reducing economic activity in their local communities.

Investing in community health centers is an investment in community health, economic stability, accessible care, and the overall well-being of our nation. A sustainable funding strategy will enable health centers to grow, reduce healthcare costs through preventative care, promote health equity, and enhance resilience during health crises.

Federal legislators must take action to secure the financial stability of community health centers. One effective strategy is increasing Medicaid expansion. By expanding Medicaid, policymakers can enhance the financials of these centers, ensuring they receive adequate reimbursement for the vital services they provide to low-income families and individuals. This expansion would improve access to care and alleviate financial pressure on the centers, enabling them to invest more resources in patient care, service growth, and staff development.

Legislators should also prioritize revising the 340B Perscription Drug Program, which allows community health centers to purchase outpatient drugs at discounted prices. Ongoing challenges, such as legal uncertainties and changes in pharmaceutical industry participation, highlight the need for regular review and updates to the program to ensure its effectiveness and fairness.

Federal legislators have a moral and economic imperative to ensure the financial stability of community health centers. By expanding Medicaid and revising the 340B Prescription Drug Program, policymakers can secure the vital services these centers provide to millions of Americans. Through robust and sustained support, we can preserve the health and well-being of our most vulnerable populations, reduce healthcare costs through preventative care, and foster economic growth.

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Sarina Brady is the CEO of VNACJ Community Health Center, a Federally Qualified Health Center with locations in Asbury Park, Freehold, Keyport, and Red Bank.