COVID-19 Catalyzing Health Center Payment Reform: Addressing the Financial Stability of the Primary Care Safety Net in Crisis and Beyond

The COVID-19 pandemic has created a severe financial crisis for health centers, which serve 22 percent of all uninsured individuals and 19 percent of all Medicaid enrollees nationally. Health centers represent a cornerstone of America’s health care safety net, and the need for their services has intensified given the dramatic increase in Medicaid and uninsured populations due to the pandemic’s economic impact. However, many health centers are facing service cuts or closure because they receive a majority of their revenue from Medicaid payers based on the volume of face-to-face visits. Drawing from our work with 12 primary care associations (PCAs) through the Delta Center, this brief outlines three key policy steps to help health centers survive in the short term and thrive beyond the COVID-19 crisis.