The operating losses are attributed to ongoing staffing shortages, increased demand for care, and changes in insurance reimbursements. (Getty Images)
The state’s nonprofit health centers that serve 85,000 patients in mostly rural parts of the state are getting $5.9 million to help with operating losses.
As part of the federal funding approved Wednesday by the Executive Council, the nine “federally qualified health clinics,” Department of Health and Human Services, and a financial consultant will study what’s driving the operating losses and create a longer-term strategy for covering uncompensated care costs.
In the department’s funding request to the council, it said the operating losses are due to ongoing staffing shortages, increased demand for care, and changes in insurance reimbursements. The clinics, located in Berlin, Somersworth, Plymouth, Littleton, Franklin, Newmarket, Conway, Manchester, and Nashua, can use the money for losses incurred in the prior 12 months.
“FQHCs are facing unparalleled challenges, in large part because inflationary pressures make it impossible to get ahead of soaring operational costs, coupled with an erosion of core funding sources,” said Tess Stack Kuenning, president and chief executive officer of Bi-State Primary Care Association, which provides training and technical assistance to the clinics. “Unfortunately, insurance reimbursement has not kept pace with these rising costs. As a result, FQHCs are living in a state of perpetual stress, trying to cut costs while ensuring that they maintain an array of essential services that our communities need to stay healthy.”
The organization also welcomed the chance to work with the state on a long-term strategy to shore up funding for uncompensated patient care.
The Executive Council voted unanimously in support of the funding without discussion.