Recession exacerbates financial problems at California community health clinics

Mar 24 2009

California community health clinics are struggling to meet an increased demand from new patients who have lost their jobs and health insurance, the Los Angeles Times reports.

The increase in patient demand comes at a time when clinics already are facing financial trouble. Community clinics rely on public funds, private donations and government reimbursement programs, such as Medi-Cal, the state's Medicaid program. However, according to the Times, private donors are cutting back on donations, foundations are experiencing a drop in revenue, and local and state government funding has been slashed.

A recent study by the California HealthCare Foundation found that the state's community clinics had financial problems before the economic recession began. The study found that more than two-thirds of community clinics were breaking even or running a deficit in 2006. Melissa Schoen, a senior program officer at CHCF, said that community clinics' deficits are expected to worsen because newly unemployed and uninsured patients often do not qualify for Medi-Cal or Medicare. Nicole Lamoureux, executive director of the National Association of Free Clinics, said clinics are looking for new funding sources, recruiting more volunteers and triaging patients.

Federal stimulus funding could provide some relief to the state's community clinics.

According to the California Primary Care Association, California clinics over the next two years will receive more than $58 million in aid for the uninsured, $15 million to create new clinics and $100 million to address capital infrastructure (Gorman, Los Angeles Times, 3/22).