January 26, 2010

The Economic Recession: Early Impacts on Health Care Safety Net Providers

Laurie E. Felland, Peter J. Cunningham, Genna R. Cohen, Elizabeth A. November, and Brian C. Quinn write that while the recession increased demands on the health care safety net as Americans lost jobs and health insurance, the impact on safety net providers has been mixed and less severe than expected in some cases, according to a new study of five metropolitan communities by the Center for Studying Health System Change (HSC). Even before the recession, many safety net providers reported treating more uninsured patients and facing tighter state and local funding. Federal expansion grants for community health centers during the past decade, however, have increased capacity at many health centers. And, programs to help direct people to primary care providers may have helped stem the expected surge in emergency department use by the uninsured during the downturn. Federal stimulus funding in 2009 has assisted hospitals and health centers in weathering the economic storm, helping to offset reductions in state, local and private funding.