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
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”
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
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
Federally Qualified Health Centers (FQHCs), FQHC Look-Alikes (LALs), and Rural Health Clinics (RHCs)
Any provider whose service is billable under Medicaid