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The Impact of Federal Stimulus Funds on Community Health Centers in California

Manatt Health Solutions

This issue brief summarizes the many opportunities for using federal stimulus funds to bolster and improve California's community health centers, while also helping to ease the financial pressures produced by the recession.

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July 2009

California's community health centers provide primary care services regardless of a patient's ability to pay, making them a crucial part of the health care safety net — and one that is particularly sensitive to the social and financial effects of an economic downturn. Accordingly, the recently enacted federal stimulus package steers substantial funding to community health centers for use in establishing new sites and services and developing their infrastructure.

This issue brief summarizes and examines the funding opportunities for community clinics under the American Recovery and Reinvestment Act (ARRA). It includes:

  • The types of grants and funds, projected funding flow, and application deadlines
  • An overview of direct and indirect funding opportunities targeting community health centers and Indian Health Service facilities
  • Details of the Medi-Cal and Medicare payment incentives for adopting electronic health records

The authors emphasize that although some funding opportunities have expired, others are forthcoming; the federal government has yet to announce funding amounts, eligibility, and project specifications. Because the time between the announcement of a program and awarding of funds is often quite short, community health centers should diligently monitor events at both the federal and state levels and communicate frequently with California officials.

The complete issue brief is available under Document Downloads.