The National Association of Community Health Centers (NACHC) is hosting an event to spotlight the policy changes and common challenges many community health centers (CHCs) face.
Whether you attend the Policy and Issues Forum or not, it’s wise to inform yourself about the state of the industry. Staying current with care coordination trends and the evolving healthcare market will contribute to your organization’s financial stability and longevity.
In this article, we will outline some of the significant problems facing CHCs and how they reflect the greater healthcare ecosystem.
Discuss problems impacting your CHC or FQHC.
What Is a Community Health Center?
Community health centers are subsidized organizations that provide affordable treatment options to over 32.5 million Americans. They operate in all 50 states.
CHCs are most impactful in underserved communities, where low-income job opportunities or lack of insurance may otherwise prevent patients from accessing quality care. Some of the many services these facilities offer include:
- Podiatry
- Health Education
- Internal Medicine
- Medical Transportation
- Pharmacy
- Preventive Healthcare
- Vaccinations
- Blood Screenings
- Pediatrics
- Primary Care
- Family Planning
Despite CHCs operating in many different ways compared to private healthcare alternatives, they share many of the same financial and compliance barriers.
Top 3 Challenges for Community Health Centers
Healthcare executives understand that maximizing financial sustainability while offering value-based care can be challenging. Federal and state regulations, competition, and interoperability are all factors to consider.
Increasing patient expectations and the implementation of AI tech in healthcare may further complicate these common challenges. Let’s explore the three most prevalent challenges community health centers face today.
Financial Constraints and Reimbursement Rates
Federal grants and insurance reimbursements generate the largest revenue for CHCs. In fact, Medicaid covered nearly half of all CHC patients in 2024.
Do you manage a private practice or facility that relies on this type of funding? If so, you know that lowered reimbursement rates can cause a business to operate within slim margins.
A pullback on post-COVID federal funding and newly imposed limits on 340B discounts for drug manufacturers adds stress to an already strained industry. CHC administrators can feel the heat, and about one quarter of practicing physicians worry that the industry’s financial stability will worsen in the next few years.
Certain policy changes might alleviate some financial woes for CHCs. For example, the federal government could reauthorize the Community Health Center Fund with a higher budget cap. Simplifying Medicaid application and renewal processes could also stabilize a predictable revenue cycle for many CHCs nationwide.
Staff Shortages
Community health centers struggle with staffing shortages in all sectors. Mental health providers, primary care nurses, and advanced practitioners are in the highest demand. In 2023, nearly 70% of CHCs reported a loss of staff — some facilities lost a quarter of their workforce.
This problem is one of the top issues for the National Association of Community Health Centers.
Most CHCs screen patients for behavioral and mental health conditions. Hence, these staffing shortages compound the problem and prevent fast and accessible treatment.
Urban CHCs are more capable of serving patients with direct care than many rural CHCs. However, both rely on supportive community programs and organizations to maintain equitable care.
Supporting the community health center telehealth sector and improving CHC funding through legislation can incentivize more healthcare professionals to work in these settings.
Easing staffing shortages can also improve public health outcomes in the most vulnerable communities — leaving more time to focus on patients with complex conditions.
Compliance Setbacks
Budget setbacks can lead to operational inefficiencies. In such cases, CHC compliance may be at risk.
Record retrieval and exchange are obstacles for many CHCs on a tight budget. Missing HIPAA deadlines or experiencing a heavy backlog of record requests could result in information blocking penalties.
These five compliance standards cause problems for some CHCs with limited staff and funding:
- The Privacy Rule
- The Security Rule
- The 30-Day Deadline
- The Minimum Necessary Rule
- The HIPAA Reproductive Care Final Rule
CHCs can partner with reliable record exchange vendors to offset any workflow bottlenecks they experience. These services will guarantee compliance during health information exchange and augment staff duties.
Solutions Made Easy for Community Clinics
Community health centers sit in a unique position within the healthcare industry. They must provide low-cost care to the public while accepting more patients every year. Without thoughtful budgeting, these problems could cause some facilities to sacrifice care quality.
Partnering with the top-rated release of information software and services solution can ease these challenges, reduce overhead costs, and simplify lasting compliance.
These options allow administrators to unburden their staff and continue operations without compliance errors or treatment delays.
Additionally, it’s worth monitoring potential healthcare policy changes that favor public clinics and other federally qualified health centers. These hot-button topics will likely continue to dominate healthcare forums like NACHC.
ChartRequest Helps Community Health Centers Achieve Fast, Low-Cost Record Exchange
ChartRequest is excited to attend the National Association of Community Health Centers forum. If you’re attending, consider visiting us at Booth 117 to chat with our team and enter our raffle for Apple AirPods.
Want to get a head start on optimizing your electronic record management? Schedule a consultation to learn which options are right for your community health center.
