How Community Health Centers are shaping the future of healthcare.
Primary care access has become an important focus for healthcare providers, as it allows for the early detection of disease, provides patients with preventative healthcare, and increases care coordination for people across the nation.
Community Health Centers, also referred to as Federally Qualified Health Centers (FQHCs), provide substantial benefits to the nation’s healthcare system by increasing access to primary care services for over 32.5 million people, according to the National Association of Community Health Centers (NACHC). CHCs aim to reduce healthcare access barriers including lack of insurance, distance, transportation obstacles, and language so that more patients can receive quality healthcare.
CHCs provide care to all patients, regardless of their ability to pay for healthcare services. They are a vital part of delivering primary, dental, behavioral health, and preventative services care in the U.S.
“Community Health Centers are a cornerstone of the U.S. health care system, providing critical access to care for the nation’s most vulnerable populations,” said Kathleen Titus, Director of Community Health and Corporate Relations at Henry Schein. “These health centers serve as a safety net, ensuring that uninsured, underserved, and low-income individuals receive essential health care services.”
It is estimated that 1 in 10 Americans are currently receiving healthcare at a FQHC, according to the NACHC. Health services through FQHCs/CHCs specifically aim to address health disparities and promote public health within urban and rural communities.
“Community health centers are the gate keepers of public health,” said Dr. Kyu Rhee, President and CEO of the National Association of Community Health Centers (NACHC). “They reach beyond the walls of the exam room to not only prevent illness and reduce costly, unnecessary hospitalizations, but also address the social drivers that negatively impact health such as lack of stable housing, food insecurity, mental health issues, and substance abuse.”
Growth within community health services
Primary care is an essential healthcare service, and the early detection of health issues can help reduce the number of hospital visits and decrease healthcare expenditures. According to HRSA, community health programs assist the nation’s highest-need communities including people with low incomes, pregnant people, children, parents, rural communities, and more by providing quality, accessible healthcare. Primary care accounts for 35% of healthcare visits, according to NACHC, however it currently receives only about 5% to 7% of total healthcare expenditures.
“At NACHC, our focus is to increase the investment in primary care so that health centers expand their reach from one in 10 patients to one in three,” said Dr. Rhee. “This is a key focus of NACHC’s work because we know that nearly one-third of the U.S. population, or 100 million Americans, report they lack access to a regular doctor or source of care.”
The need for CHCs across the U.S. has continued to grow post-pandemic, and in turn, the market for CHCs is currently growing. According to the Health Resources & Services Administration (HRSA), approximately 1,400 FQHCs are currently operating over 15,000 locations across the U.S. These centers serve more than 31 million patients annually, accounting for over 120 million patient visits.
Increased investment in the future of health centers will not only increase patient access to care but will contribute to economic growth as well. “Beyond their health care impact, CHCs generate significant economic benefits for local communities by creating jobs and engaging with local businesses,” said Titus. “Looking ahead, the market for FQHCs is poised for continued growth, driven by the expansion of Medicaid, increased focus on social determinants of health, and ability to address ongoing public health challenges.”
CHCs serve one in nine Medicaid enrollees, one in five uninsured persons, and one in five low-income individuals (below 200% of the poverty level), according to NACHC. Last year, health centers provided mental health services to over 2.9 million patients, Substance Use Disorder Services to over 300,000 patients, and Medications for Opioid Use Disorder (MOUD) to over 230,000 patients.
In fact, the outlook for the growth of CHCs is positive. The 2023 estimated annual CHC revenue was $50 billion, according to HRSA, with funding sourced from patient fees, Medicare and Medicaid, federal grants, and other contributions.
Increasing demand for care
Due to their high use by the population, health centers are facing a rapidly increasing demand for healthcare. Higher patient numbers, along with ongoing industry challenges post-pandemic, have posed unprecedented obstacles for CHCs.
“Despite their critical role, CHCs face multiple challenges that can impede their effectiveness. Funding fluctuations, particularly in federal and state support, can impact their ability to sustain services,” said Titus. “Additionally, post pandemic workforce shortages, difficulties in retaining qualified health care professionals in underserved regions, and competing with the private sector for providers pose significant hurdles.”
“Health centers are balancing the growing demand for care while navigating thin operating margins from Medicaid redeterminations and cuts to the 340B federal discount drug program,” said Dr. Rhee. “Health centers also continuously fight for federal funding to keep pace with the growing demand for affordable primary services. Workforce shortages remain a persistent problem due to the chronic underinvestment in primary care and workforce training programs.”
In response to the healthcare industry workforce shortage, HRSA announced a Teaching Health Center Graduate Medical Education Program (THCGME), which awards funding to health centers wanting to develop and train their own residents. According to Henry Schein, the company’s team has played a role in the THCGME planning and development meetings, giving Henry Schein an understanding of what it takes to launch a successful education program and combat healthcare industry issues.
Supply chain and CHCs
CHCs provide a wide range of services and care all under one roof. According to NACHC, health centers therefore have supply needs that differ from a traditional physician’s office.
Due to their mission and patient demographics, CHCs are budget conscious. To meet the needs of health centers, suppliers that deliver cost-effective solutions, value-based pricing, and group buying discounts are invaluable to CHCs, according to Henry Schein.
“Reimbursements are generally lower for Community Health Centers than those in the private sector, so they rely on federal grants and state funding to operate within tight financial constraints,” said Titus. “A sales team familiar with the specific challenges and regulatory landscape of CHCs can better tailor their offerings, ensuring compliance and reducing the risk of non-compliance, which is critical for maintaining federal funding.”
“Health centers must stock equipment and supplies for all of those services in addition to the innovative services they carry out to address the social drivers of health – nutrition classes or exercise classes to address diabetes, obesity and hypertension; food pantries or gardens to address food insecurity; or transportation services for patients who do not drive,” said Dr. Rhee.
CHCs specific product needs span a wide range of categories, and health centers must tailor their services according to the surrounding community’s health needs. Primary care supplies, including diagnostic tools like blood pressure monitors, stethoscopes, and exam room equipment, are fundamental products for CHCs, according to Henry Schein. Pharmaceuticals, especially for chronic conditions, and point-of-care testing supplies, are also in high demand, along with support for the 340B drug pricing program.
Additionally, CHCs require laboratory equipment, patient home monitoring devices, and mobility aids. Dental services are also offered by 80% of CHCs, creating a need for dental equipment, consumables, instruments, and diagnostics. Telehealth technology is increasingly vital for screenings and consultations, according to Henry Schein, particularly as many services have shifted to virtual platforms in response to health care needs during the pandemic.
“Suppliers who align with the mission and values of CHCs, and offer integrated, streamlined solutions, are likely to build trusted, lasting partnerships,” said Titus.
Future of community health
The ongoing mission and future of the community health center system has become more important in light of the hurdles associated with the COVID-19 pandemic, according to NACHC.
To create a structure for addressing ongoing challenges, NACHC recently unveiled its Strategic Framework which sets commitments for advancing the Community Health Center Movement, according to Dr. Rhee. The Strategic Framework lays out ten priorities for CHCs divided between three core areas including Employer of Choice, Provider of Choice, and Partner of Choice.
“Since its founding more than 50 years ago, NACHC has been the leader in responding to the need for increasing access to affordable, equitable, quality health care,” said Dr. Rhee. “NACHC is committed to supporting innovation in workforce development, outreach and enrollment, population health, targeted emergency assistance, important research and policy work, and more.”
Other ongoing initiatives related to health centers include efforts from Henry Schein, that is reinforcing the important role CHCs play in preventive care by launching the Prevention is Power™ campaign in February 2024. This is a multi-year public health awareness campaign from the Henry Schein Cares Foundation, Inc. (HSCF), and aims to help improve health literacy and strengthen patient utilization of integrated, preventive care, with the goal of reducing incidences of chronic diseases as well as overall health care spending.
“To achieve the campaign’s goals, HSCF partnered with a diverse cross-section of leading medical and dental provider associations, including the American Dental Association (ADA), American Medical Association (AMA), National Medical Association (NMA), The Arnold P. Gold Foundation, National Association of Community Health Centers (NACHC), and other trusted organizations,” said Titus. “The campaign kicked off with the Prevention is Power Health Care Screening Program, in partnership with NACHC, through which HSCF provided grants and health care product donations to six community health centers across the U.S.”
Specifically tailored programs and initiatives such as these are key to addressing ongoing issues within healthcare. The primary care landscape continues to rapidly evolve, and community health centers continue to serve the industry to meet these shifting needs equitably. “Looking ahead, the market for FQHCs is poised for continued growth,” said Titus, “driven by the expansion of Medicaid, increased focus on social determinants of health, and ongoing public health challenges.”