Florida’s Community Health Centers Sound Alarm on Financial Health Amid Medicaid Reimbursement Concerns

Community health centers across Florida are sounding the alarm over what they perceive as inadequate Medicaid reimbursement rates, raising concerns about their own financial stability.

According to these centers, the current Medicaid reimbursement rates fall short, leaving a significant gap of $106, or over 42%, for every Medicaid patient visit. Bradley Herremans, CEO of Suncoast Community Health Centers in Hillsborough County, stressed the urgency of addressing this funding gap. He emphasized that bridging this divide could facilitate the expansion of services and the opening of new clinics. However, failure to address the issue may lead to service reductions or even closures, disproportionately impacting low-income populations.

“The population is just growing exponentially around here, and that just drives the additional need for additional services,” explained Herremans, highlighting the increasing strain between revenue and the demands placed on Community Health Centers.

Senator Kathleen Passidomo, R-Naples, who serves as president of the Senate, recently secured unanimous passage of her “Live Healthy” proposal, Senate Bill 7016, aimed at bolstering the state’s healthcare workforce. Health centers are optimistic that lawmakers will address funding gaps during budget negotiations between the House and Senate.

Jonathan Chapman, president and CEO of the Florida Association of Community Health Centers, stressed the collective nature of the challenge, noting that no single entity can fully address it. He outlined a proposed $40 million request for state recurring funds, which, when combined with federal dollars, could result in close to a $100 million investment. This investment would equate to approximately $22 per Federally Qualified Health Center (FQHC) patient.

FQHCs play a vital role in Florida’s healthcare landscape, serving 1.8 million patients annually, with over half covered by Medicare or Medicaid, and nearly a third uninsured. Chapman underscored that a significant majority of patients served by Community Health Centers live below the Federal Poverty Level.