HHS Awards $90M to Health Centers to Boost Health Equity Via Data Modernization

The US Department of Health and Human Services (HHS) awarded approximately $90 million in American Rescue Plan funding to nearly 1,400 community health centers as part of an ongoing effort to advance health equity and improve care through enhanced data collection and reporting.

Funding was awarded through the Health Resources and Services Administration (HRSA), which has launched an initiative to support health equity by enabling community health centers to have improved data on patient health status and social determinants of health (SDOH).

The community health centers receiving the funding serve as a major source of primary care in underserved communities. This means that data modernization has the potential to make a significant positive impact on health equity and patient outcomes, according to the press release. The funding will support these efforts by helping health centers use higher-quality data to identify and respond to the specific needs of their patients and communities, advance COVID-19 efforts, and prepare for future public health emergencies.

"Time and again, the COVID pandemic has demonstrated the vital role of trusted community leaders in delivering health care services," said HRSA Administrator Carole Johnson in the press release. "Health centers are that trusted resource in the highest risk and hardest hit communities in the country.  As we recognize the heroic work of the frontline health care workers who make health centers what they are, today we also are investing in the tools they need to help them continue to best serve their communities."

HRSA-funded health centers are community-based and patient-directed. They play a crucial role in providing accessible health services to over 30 million Americans who are part of underserved communities. Last year, these health centers provided care for one in five residents of rural areas and nearly 10 percent of people nationwide. One in three health center patients were living in poverty in 2021, and almost two-thirds were members of racial or ethnic minorities.

The funding, which became available for applicants in April, is part of a larger set of awards to bolster efforts to eliminate inequities in COVID-19 care and outcomes in underserved communities. Since the beginning of 2021, the American Rescue Plan has provided $7.6 billion to strengthen the health center workforce, make necessary facility renovations, and provide up-to-date equipment and supplies.

HHS also announced that it would invest nearly $60 million in expanding healthcare capacity in rural and tribal communities.

Around $46 million of the funding will support 31 awardees working on expanding capacity through healthcare job development, training, and placement. The funding includes support for frontline healthcare workforce needs, including dental hygienists, medical or dental assistants, community-based doulas, and others.

The remainder of the funding will be used to create new medical residency programs in rural communities to increase the number of physicians and support initiatives to improve health outcomes and care delivery for rural counties and veterans.