Community Health Centers: Essential, Resilient, and Under Pressure

Community health centers (CHCs) are the backbone of the U.S. health care safety net, delivering primary, behavioral, and preventive care to more than 32 million patients annually. From low-income families to rural populations and uninsured individuals, CHCs ensure no one is left behind — regardless of their ability to pay. But as demand for services grows and financial pressures mount, these vital providers are being asked to do more with less.?

Here are four essential resources that shed light on how CHCs are rising to the occasion, and what challenges lie ahead.?

1. Resilient but Stretched: Community Health Centers Face Rising Challenges? ?

CHCs continue to deliver high-quality, comprehensive care amid funding gaps and workforce shortages, while innovating through telehealth and community-focused services. In “Community Health Centers’ Progress and Challenges in Meeting Patients’ Essential Primary Care Needs" you’ll learn how:?

? CHCs deliver more care with fewer resources: Despite workforce shortages and funding gaps, CHCs continue to offer timely appointments, expanded telehealth services, and comprehensive care.?

?? Workforce shortages are worsening. Over 70 percent of CHCs report critical staffing shortages, particularly for mental health professionals, nurses, and physicians.?

?? Telehealth bridges access gaps but needs support. While telehealth has expanded, financial barriers and reimbursement challenges threaten its long-term sustainability.?

2. A Lifeline for Maternal Health?

Community health centers play a crucial role in providing maternal care — especially in rural areas and maternity care deserts — yet they face growing workforce shortages and financial pressures that threaten their ability to meet rising demand. Investing in CHCs is critical to ensuring access to high-quality maternal care and addressing disparities in maternal and infant health. In “Stressors Stack Up on Essential Maternity Providers — Community Health Centers Need Support in a Post-Dobbs World,” we explore how:?

?? CHCs are a critical source of maternal care. They serve millions of women of reproductive age, including 40 percent of low-income women and many in maternity care deserts.?

?? Maternal health policy restrictions are straining capacity. Recruiting and retaining maternal health providers, particularly in states with restrictive abortion policies, has become increasingly difficult.?

?? CHCs fill the gap when hospitals close. As maternity wards shut down, CHCs are absorbing more prenatal and postpartum patients, often with complex needs.?

3. Financial Stability on the Brink?

With mounting financial pressures threatening their ability to provide comprehensive care, CHCs need policy changes to secure their future amid rising costs and declining revenues. Our blog post, “Community Health Centers Are Serving More Patients Than Ever, but Financial Challenges Loom Large,” reveals the financial picture facing CHCs, including:?

?? Record patient numbers, but shrinking margins. In 2023, CHCs served 31 million patients — but profit margins declined 64 percent between 2021 and 2023.?

?? Medicaid redeterminations are taking a financial toll. Nearly one in four Medicaid patients at CHCs were disenrolled by April 2024, leading to rising uncompensated care.?

?? 340B program restrictions threaten revenue. Changes to this vital drug discount program have already slashed CHC budgets nationwide.?

4. The Funding Lifeline: Why Sustained Federal Support Matters?

Finally, to understand the critical role of sustained federal funding in ensuring that CHCs can continue providing essential care, we conclude with “Community Health Centers Need Increased and Sustained Federal Funding.” This blog post, featuring quotes from interviews with federally qualified health center leaders and experts, details the policy reforms necessary to stabilize the financial outlook of these critical health resources, such as: ?

?? Reauthorize and increase the Community Health Center Fund. Policymakers must expand the Community Health Center Fund and ensure its health to avoid allowing billions of dollars in essential funding to fall into risk.?

?? Increase stagnant Medicaid reimbursements. Flat reimbursement rates make it difficult for CHCs to attract and retain staff, impacting patient care.?

?? Revise the 340B prescription drug program. CHCs rely on predictable funding to plan services — but inconsistent support from Congress and pharmaceutical companies complicates long-term sustainability.?

Community health centers are critical pillars of America’s health care system. We expect these resources will help to provide you with a deeper understanding of their indispensable role, ongoing challenges, and the urgent need for sustained policy support to ensure they continue to thrive.?