The recently enacted “One Big Beautiful Bill Act” may force community health centers to make difficult budget choices in coming months with the potential for workforce reductions and site closures even as demand for services increases.
In Virginia, there are 31 federally-qualified community health centers with more than 200 locations statewide. The centers offer an array of services including health, dental, behavioral health and substance abuse services to people who receive Medicaid or Medicare or are underinsured or uninsured.
Patients who rely on Medicaid include children, seniors, veterans, farmworkers and caregivers.
More than 1,500 CHCs nationwide are the health care home to:
- One in five uninsured people
- One in three people living in poverty
- One in five rural residents
- 9.4 million children
- 419,000 veterans
The clock is ticking
Federal funding is set to expire on September 30 for CHCs leaving the long-term future of the facilities up in the air.
On top of the uncertainty, the bill may result in 4 million CHC patients losing insurance and result in $7 billion in additional uncompensated care, according to estimates from the National Association of Community Health Centers.
The bill enacted new Medicaid work requirements and shifted costs for administering Medicaid and other programs to states.
When people lose insurance coverage, they don’t stop getting sick and many turn to CHCs for treatment. CHCs never turn patients away, and with anticipated Medicaid coverage reductions, it could force CHCs to make workforce cuts and close some locations. NACHC’s estimates show that the legislation could lead to at least 34,000 CHC job losses and 1,800 CHC site closures across the country.
An analysis found that this level of disruption could lead to 6,000 preventable CHC patient deaths per year.
In February, some CHCs had to suspend service temporarily after the federal government halted payments causing widespread panic among providers and patients. The funding freeze was eventually rescinded, but CHCs were faced to confront their future under the Trump administration.
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Crystal Graham
