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 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
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”
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
Repay a provider’s medical loan or create a “bonus” to retain providers
FQHCs, FQHC Look-Alikes, and Rural Health Clinics
Any provider whose service is billable under Medicaid
Over four years, but limited only to the amount borrowed