Provider Recruitment and Retention Financing

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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 incentives. 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 state or federal loan-forgiveness programs pose limitations, including:

  • Inability to qualify for loan forgiveness grants due to comparatively low Health Professional Shortage Area (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 providers recruited through traditional state and federal loan-forgiveness programs often leave after their required 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 addresses their limitations. 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 $75,000 loan, average patient visits, and some basic payer-mix assumptions:

  • Provider-specific revenues are estimated at approximately $380,000 per year
  • Financing costs average less than $600 per year, plus principal
  • The CHC’s average net benefit is $145,000 per year

The risks to the CHC are mitigated:

  • Health centers never owe more than about $40,000
  • Health centers are liable only for what is borrowed
  • The program assumes a six-month-delay start, to determine whether the CHC and provider are a good “fit”

Available amounts:

Starting at $50,000/center


A loan from PCDC to the CHC, advanced over three years, repayable over four years


Financial capacity; HPSA is not a requirement

Provider Commitment:

Four-year minimum


Repay a provider’s medical loan or create a “bonus” to retain providers

Eligible Borrowers:

FQHCs, FQHC Look-Alikes, and Rural Health Clinics

Eligible Providers:

Any provider whose service is billable under Medicaid


Over four years, but limited only to the amount borrowed