Provider Recruitment and Retention Financing

The Provider Recruitment and Retention (PR&R) Financing Program enables community health centers (CHCs) to either recruit new providers or retain one or more staff through alternative “loan-forgiveness/performance-incentive” financing. Previously excluded from more traditional loan-forgiveness offerings, CHCs can now benefit from new financial incentives available through PCDC — and help create healthier, thriving communities through consistent primary care.


For health centers that attempt to recruit and/or retain providers, financial incentives such as loan-forgiveness programs pose drawbacks, including:

  • Disqualification due to comparatively low HPSA scores
  • Inability to access programs due to late application (missing the cutoff date)
  • Inability to access programs due to insufficient funding vs. high demand

Even for centers eligible for loan-forgiveness programs, the provider-shortage problem might only be temporarily relieved, since recruited providers leave after their required two-year commitment.


In response to these issues, PCDC’s PR&R Financing Program not only replicates the core benefits of more traditional loan-forgiveness programs, but also bypasses their shortcomings. Through a multiyear lending commitment, CHCs previously excluded from traditional programs are provided multiple tools to attract and retain providers.

Sample CHC Economics Using PR&R

Projected Impact

Based on a $100,000 loan, average patient visits, and some basic payer-mix assumptions:

  • Provider-specific revenues are estimated at approximately $345,000 per year
  • Financing costs average about $19,000 per year
  • The CHC’s net benefit is $100,000+ per year

The risks to the CHC are mitigated:

  • At no point is the CHC liable for more than $50,000
  • The program assumes a six-month-delay start, to determine whether the CHC and provider are a good “fit”

Available amounts:

Starting at $100,000/center


A loan from PCDC to the CHC, advanced over five years, repayable over six years


Financial capacity; HPSA is not a requirement

Provider Commitment:

Six-year minimum


To repay all or a portion of a provider’s medical loan, or to create a “bonus” structure at a center to retain one or more providers

Eligible Borrowers:

Federally Qualified Health Centers (FQHCs), FQHC Look-Alikes (LALs), and Rural Health Clinics (RHCs)

Eligible Providers:

Any provider whose service is billable under Medicaid