Workforce Resource

President Obama's massive economic stimulus measure - the American Recovery and Reinvestment Act (ARRA) - was launched on February 17, 2009. The law, which taps out at more than $787 billion in spending and tax cuts, contains more than $2 billion for major initiatives at community health centers, including a $500 million investment in primary care workforce training and loan repayment.

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Calling the funding for health centers a "down payment on health reform," Secretary of Health and Human Services Kathleen Sebelius recently stressed the importance of health centers in the nation's evolving reform agenda: "The economic downturn is hurting all of us and when workers lose their jobs, they often lose their health insurance, too," said Sebelius. "Community Health Centers provide essential care for families across the country that do not have insurance or cannot afford the high cost of care. The Recovery Act grants and the funding we have released are key investments that will help deliver care to millions of Americans."

Of the $500 million, $300 million has been set aside for the National Health Service Corps (NHSC) with $200 million designated for the Title VII Health Professions and Title VIII Nurse Training programs. It is estimated that the funding for the NHSC will effectively double the number of its current recruits -- from 4,000 to 8,200 -- by 2011. What's more, $75 million of the funding can be used through 2011 to extend the contracts of existing NHSC recruits working in underserved communities.

Recognizing the role health centers play both in expanding access to care and creating jobs in low-income communities, ARRA funding has also been made available for health center capital needs and operations, including:

~$1.5 billion for construction, renovation, equipment, and acquisition of Health Information Technology (HIT) at Section 330-funded health centers.

~$500 million in supplemental payments to existing health centers for addressing a spike in demand from recently unemployed residents, and for funding new sites and additional services at existing sites.

While the infusion of dollars to federally-funded health centers in Massachusetts has provided some relief (non-federally funded health centers remain ineligible for stimulus grants), League CEO James W. Hunt, Jr. says there must be a corresponding investment from the state.

"Federal dollars provide significant leverage for Massachusetts as state leaders work to mitigate the effects of a down economy and preserve the goals of health reform," said Hunt. "With additional support from the state, community health centers can expand health access for thousands of residents while creating and preserving jobs in some of Massachusetts hardest-hit communities."

In addition to employing nearly 10,000 individuals, health centers provide critical entry level jobs and training and career building opportunities in the communities they serve. When looking at their overall economic impact on the state's economy, Massachusetts community health centers stimulated $1.25 billion in total output, generated $818 million in household income and supported more than 13,000 jobs in 2007.