With this additional funding it was projected that health centers could provide care for an additional 2.9 million patients. In fact they served an additional 2.1 after only the first year of funding. Because these neighborhood-based and patient-directed centers are so intertwined with their neighborhoods they can often identity the health needs earlier and design effective community-based solutions before others even understand the underlying dynamics. If it is an Emergency, go directly to the hospital. clinic is smaller than a hospital where patients are less sick and do not stay An important but less widely discussed byproduct of the increased funding to community health centers is the enormous economic activity in the broader community generated by this influx of dollars. Case in point: the $1.8 billion investment that the American Reinvestment and Recovery Act made in these centers in 2009 yielded $3.2 billion in total economic activity in those areas of the nation that needed it most. These health centers are required to provide a full range of health-related services, typically beyond what other health care providers such as hospitals or out-patient clinics provide. This one-time funding nearly doubled their annual funding of $2.1 billion in FY 2008. What is less touted is the economic activity that community health centers generate in their communities. overnight. Sacramento, CA 95899-7377, For General Public Information: The increased funding for these health centers through the Affordable Care Act will be funneled to centers serving these communities where the extra economic benefits will be especially valuable. The Affordable Care Act commits $11 billion to these centers over the next five years to expand services. One study finds that increased funding from 1996-2006 resulted in increases in the provision of on-site mental health services, 24-hour crisis intervention, after-hours urgent medical care, and substance use counseling. By design, these health centers are run by a board of directors comprised mostly of health center patients, ensuring the care delivered is tailored for the needs of the communities they serve. This memo examines the important role community health centers play in both health care delivery and improved neighborhood economic activity, describes how stimulus act funding quickly translated into expanded health care and improved fiscal health, and estimates the economic impact the additional ACA funding will have on economic activity and the creation of more jobs. Studies demonstrate that increased funding to health centers creates additional economic stimulus both within the center and beyond. may need to go to a Hospital for some of the following health issues: PO Box 997377 The new law provides an additional $9.5 billion in operating costs and $1.5 billion for new construction. leadership and concerted action. These employees spend their income on everyday purchases such as groceries, clothing, cars, and TVs (induced effect). These jobs also include ancillary staff directly employed in the community health centers and other jobs indirectly created by industries supporting the services these community health centers provide. New jobs and in some cases brand new businesses that did not previously exist were created. These dollars also translate into job retention and creation. The combination of high unemployment and rising home foreclosures is especially felt in communities of color. The Recovery Act granted additional funding of about $2 billion to community health centers for operating costs and new construction dollars. Case in point: Using modeling developed by the U.S. Department of Agriculture and the Minnesota IMPLAN Group, an economic modeling firm, researchers determined how much economic activity a particular community health center will bring to a community, with details specific to each county and industrial sector. Their role in helping to care for the 32 million Americans who will be newly covered by the new comprehensive health reform law was reinforced when they were acknowledged in the new law and set to receive significant increases in funding over the next five years. As seen in Table 1, although the majority of the economic activity ($31 billion) will be generated within the health center system, businesses in surrounding communities will enjoy a large percentage ($22.8 billion) of the economic growth. Although the extra funding was allocated to improve and expand patient care, the secondary economic effects of this investment on the communities they serve cannot be ignored. First, and most obviously, health centers directly employ people in their communities, including key entry-level jobs, training, and other community-based opportunities. The Affordable Care Act allocates that the additional $9.5 billion funding for operating costs be distributed by a formula over the next 5 years and indicates that the funding should be in addition to (not a replacement for) current, appropriated funding which was $2.2 billion in FY 2010.24 We estimate that total spending by community health centers (including base appropriated funding and the new health reform funding) will generate $54 billion in economic activity in 2015, with $33 billion of this a direct result of the additional investment in the new law. 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