June 2008

Outpatient Issue

 

Health & Human Services Proposes Fundamental Changes in Primary Care Shortage Designations

On Feb. 29, the U.S. Department of Health and Human Services (HHS) published proposed rules that would fundamentally alter the methodology used for designating primary care Health Professional Shortage Areas (HPSA) and Medically Underserved Areas/Populations (MUA/P). These designations are used to determine eligibility for 40 federal programs that create incentives for primary care providers to practice in underserved areas. Some of these incentives come through enhanced Medicaid reimbursements, educational loan repayments for providers, and Community Health Center funding.

In Washington State, losing benefits that come with designation could be a harsh blow for health care providers and their communities, which are already underserved. Both Governor Gregoire and Secretary Selecky are concerned about the impact of the proposed HPSA methodology on primary care services. Their comments are publicly available at the DOH website: http://www.doh.wa.gov/hsqa/ocrh/ .

It is broadly accepted that the current designation criteria and methodology are outdated. The rules were written in the 1970s, when the National Health Service Corps (NHSC) was formed and the first grant opportunities for Federally Qualified Health Centers were made available. Since then, health care delivery, as well as the requirements of communities, has changed. While the proposed rules are improvements, more is needed.

In their comments to the HHS, both the Governor and the Secretary emphasize how difficult it is to gauge the impact of the proposed rules. First, the proposed methodology is complex. Getting an accurate assessment of the number of shortage designations that would be retained or lost is difficult to do. It takes provider information at the local level, nurse practitioners and physician assistants, as well as physicians. This collection takes significant time and resources.

There are also issues related to the data used in the calculations, specifically the multipliers, percentiles, and scores used to generate the Index of Primary Care Underservice score. Consequently the results of any impact analysis should be taken as suggestive. While the Washington State Department of Health predicts a loss of 13 designations previously covered by a HPSA/MUP, it acknowledges that it is not possible to come up with an exact number.

Second, significant questions remain about the way the designations will be used by the numerous programs whose funding decisions rest on shortage designations. The proposed rules create new multi-tiered designation levels as well as a “safety net facility” designation. It is still not clear how agencies will adopt and use the proposed rules for the different types of designations.

Changes in how programs use HPSA/MUP designations will directly affect the viability of primary care services in our state. Over $150 million dollars of federal and state resources per year are linked to programs that use these designations.

The Department of Health, together with local partners from federally qualified health centers, rural health clinics, and hospitals, are providing feedback and requesting changes on the proposed rule. The comment period was extended a second time to June 30. We hope that any final rule will be improved and take to heart the comments that have been submitted.
 

Back -Ocean Beach Hospital A Perfect Fit Table of Contents Next - Reaching Out