Health Centers Get $1B in Federal Funds to Modernize Facilities

The Biden-Harris Administration recently announced $1 billion in awards to health centers for modernizing their facilities.

Approximately 1,300 health centers funded by the Health Resources and Services Administration (HRSA) received the aid from the American Rescue Plan Act. The centers are located in all 50 states, as well as Washington DC and US territories, and will use the awards on healthcare construction and renovation projects.

“Health centers are lifelines for many of our most vulnerable families across the country, especially amidst the pandemic,” HHS Secretary Xavier Becerra said in the announcement. “Thanks to American Rescue Plan funds, we’re modernizing facilities across the country to better meet the most pressing public health challenges associated with COVID-19. This historic investment means we get to expand access to care for COVID-19 testing, treatment and vaccination – all with an eye towards advancing equity.”

The federal aid from American Rescue Plan Act can be used for “COVID-19-related capital needs.” Those needs could include new facility construction, renovations or expansions of facilities for pandemic response, and investments in new “state-of-the art equipment,” including telehealth technology, mobile medical vans, and freezers that can store vaccines.

The awards have been directed to health centers that treat medically underserved patients and vulnerable populations and communities. These patient populations have been disproportionately impacted by the COVID-19 pandemic.

The Biden-Harris Administration also intend for the funding to boost primary care infrastructure. Currently, more than 91 percent of health center patients live at or below 200 percent of the Federal Proverty Guidelines or are part of a family that falls within that range. Almost 63 percent are also racial/ethnic minorities, the Administration reported in the announcement.

“HRSA-funded health centers play a vital role in the local community response to the COVID-19 pandemic,” said HRSA Acting Administrator Diana Espinosa. “Investing in health center construction and modernization will significantly increase access to affordable, high-quality primary health care services in underserved communities across the nation.”

Health centers will need about $17.5 billion to improve facilities over the next five years to meet the estimated number of patients in need, a statistic shared by the National Association of Community Health Centers (NACHC) shows. The statistic came from an assessment conducted by Capital Link, which also found that an overwhelming majority of health centers (97 percent) already have at least one capital project planned, whether it is to build, expand, or renovate their facilities for patient care.

More federal funding could be allocated to health centers for capital projects through the Build Back Better Act. The Act lays out the Biden-Harris Administration’s plans to bolster the country’s infrastructure, including healthcare.

As part of the Build Back Better Act is $10 billion for community health center capital projects and $6.3 billion for primary care workforce.

“This funding is needed to ensure meaningful access for the growing number of Medicare beneficiaries treated at health centers who would be eligible for dental, vision and hearing services into the future,” NACHC said.