Community Health Center Information Systems Assessment: Issues and Opportunities. Final Report. Health Center Funding

10/30/2005

Since the 1996 passage of the Health Care Consolidation Act, the Federally Qualified Health Center (FQHC) program has grown steadily both in the provision of services to target populations and in funding.  Federal appropriations for health centers have risen steadily over the past two decades, an increase that has accelerated over the past several years.  For FY 2005, the program was funded at nearly $1.73 billion dollars.  Growth in funding has resulted in the increase in health center access points: new health center grantees as well as new health care delivery sites for existing centers. Exhibit 2 below provides a breakdown of estimated actual revenue accrued by health centers from 2002 through 2004.  In addition, the table shows the share of total revenue by source of funding (roughly consistent across years).

Exhibit 2. Health Center Annual Revenue by Source, 2002 — 2004 *
Funding Source 2002 Revenues 2003 Revenues 2004 Revenues 2004 % of  Total
Section 330 $1,145 $1,323 $1,629 24 %
Medicaid $1,808 $2,116 $2,432 36 %
Medicare $299 $326 $382 6 %
SCHIP $130 $150 $145 2 %
Other 3rd party $328 $367 $418 6 %
Self Pay $303 $352 $416 6 %
Other grants (Federal) $171 $198 $196 3 %
Other grants
(State, local, other)
$171 $979 $1,257 19 %
Total $5,061 $5,811 $6,282 100 %
* NOTE: All dollar figures in millions2

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