UPDATED: President Obama Announces Recovery Act Awards to Community Health Centers (VIDEO)
Today President Obama praised the work of health centers in reducing unmet health care needs and keeping down costs and announced nearly $600 million in American Recovery and Reinvestment Act (Recovery Act) awards to support their work. The funds will go toward major construction and renovation projects at 85 Community Health Centers nationwide. To view a list of the health center recipients, visit here.
(See below for video of the event.)
The funds will also help networks of health centers adopt Electronic Health Records (EHR) and other Health Information Technology (HIT) systems to improve patient care and quality. The awards are expected to not only create new job opportunities in construction and health care, but also help provide care for more than half a million additional patients in underserved communities, according the White House. The President also announced a new demonstration initiative to support the delivery of advanced primary care to Medicare beneficiaries through health centers.
“Together, these three initiatives – funding for construction, technology and a medical home demonstration project – won’t just save more money, and create more jobs, they’ll give more people the peace of mind of knowing that health care will be there for them and their families when they need it,” said President Obama in a press release issued by the White House. “Ultimately, that’s what health reform is really about.”
NACHC President and CEO Tom Van Coverden was present at White House announcement, along with Members of Congress and Community Health Center leaders. "We are deeply humbled by the President’s praise for our work in improving health while also reducing costs in America’s most challenged communities," he said. "The new resources announced today will assist health centers to serve another 500,000 people who would otherwise have no place to seek care but at a hospital emergency room. These awards will also help make our economy healthier, by creating new jobs and opportunities at a time when our country struggles to restore its economic growth. We are profoundly grateful to the Congress and the Obama Administration for this invaluable investment in primary care. We will work hard to continue the merit and the trust that both the Administration and Congress have placed in Community Health Centers."
In his remarks, the President said, "I especially want to recognize the leaders here today from health centers across the country for what all of you are doing in your communities every day –- working long hours to provide quality care at prices that people can afford, with the dignity and respect they deserve, and in a way that takes into account the challenges that they face in their lives. For you folks, health care isn't just about diagnosing patients and treating illness –- it's about caring for people and promoting wellness. It's about emphasizing education and prevention, and helping people lead healthier lives so they don't get sick in the first place. And it works. Studies show that people living near a health center are less likely to go to the emergency room and less likely to have unmet critical medical needs. CHCs are proven to reduce ethnic and racial disparities in care. And the medical expenses of regular CHC patients are nearly 25 percent lower than those folks who get their care elsewhere -- 25 percent lower."
To qualify for funding, a health facility must be a Federally Qualified “Community” Health Center. Grants of $508.5 million will be provided through the Facility Investment Program (FIP) program to address pressing health center facility needs.
Also, as much as $88 million will be available to help Health Center Controlled Networks improve operational effectiveness and clinical quality in health centers by providing management, financial, technology and clinical support services. (For more information and guidance on this funding, click here.)
President Obama also directed the Department of Health and Human Services to implement a demonstration initiative designed to evaluate the impact of the advanced primary care practice model on access, quality and cost of care provided to Medicare beneficiaries served by Community Health Centers. This model, known as the “medical home,” promotes accessible, continuous, and coordinated family-centered care. Developed and administered by the Centers for Medicare and Medicaid Services (CMS), the demonstration will last three years. CMS anticipates that up to 500 health centers will participate.
