Background

The Health Resources and Services Administration (HRSA) will award approximately $39.4 million in supplemental grant awards to health centers funded under section 330 of the Public Health Service Act in fiscal year (FY) 2008 to support base grant adjustments for existing health centers (i.e., an increase in base funding). In addition, a limited number of health centers that serve a high percentage of uninsured or that experienced significant increases in the number of uninsured patients will receive an additional adjustment to their base grant. These base adjustments are expected to strengthen health centers’ ability to maintain their current service delivery capacity, assuring access to comprehensive, culturally competent, quality primary health care services for the Nation’s underserved communities and vulnerable populations.

FY 2008 Base Adjustment Process

HRSA will award approximately $39.4 million for health center base adjustments in FY 2008 to support existing health centers. The FY 2008 appropriation included an across the board 1.747 percent rescission to the Health Center Program funding as well as a concurrent increase to base funding for health centers. As a result, each FY 2008 approved health center will receive a 2 percent increase in its FY 2008 target funding level after applying the 1.747 percent rescission to the health center’s FY 2008 target level of funding. Approximately $35 million will be required to support this 2 percent base adjustment increase.

HRSA will award the remaining $4.4 million to health centers that have been significantly impacted by the financial burden of delivering primary health care services to the uninsured (i.e., those health centers that serve a high percentage of uninsured and/or have experienced significant increases in the number of uninsured patients). The calendar year (CY) 2006 UDS data, and 3 year UDS trend data for the period ending in 2006, will be used as the sources of data for this information. Health center grantees reporting UDS data demonstrating that 70 percent or more of their patient population in CY 2006 were uninsured will be awarded an additional 1.497 percent base adjustment. Grantees reporting at least a 50 percent increase in the number of uninsured patients from CY 2004 to CY 2006 (with a minimum increase of 1,000 uninsured patients) will also be eligible for an additional 1.497 percent base adjustment. Grantees will be eligible to receive an additional base grant adjustment in both categories (i.e., 70 percent or greater uninsured patients; 50 percent increase in uninsured patients), if applicable.

All grantees with April 1 continuation start dates will receive the base adjustment as part of their FY 2008 continuation award; this process will continue for grantees with May through July budget starts. Grantees with start dates earlier in FY 2008 will receive their base adjustments through supplemental Notices of Grant Awards that will apply both the rescission and the base adjustment.

Grantees should contact their Project Officer with any questions regarding this Program Assistance Letter.

Frequently Asked Questions - Fiscal Year (FY) 2008 Health Center Program Base Adjustments

What are the eligibility requirements for receiving a FY 2008 base adjustment?
All Health Center Program grantees whose FY 2008 continuation application was approved will be awarded a 2 percent base adjustment to their rescissed FY 2008 target funding level; about 15 percent of grantees will get an additional base adjustment increase based on their percent of uninsured and/or their increase in the number of uninsured patients.

Will health centers with more than one Health Center Program funding source (i.e., Community Health Center, Migrant Health Center, Health Care for the Homeless, and/or Residents of Public Housing) be able to decide the proportion of the base adjustment for each part of the project scope?
No. The base adjustment will be awarded proportionately to the current target funding level grant allocation.

Will there be an opportunity to request additional base adjustment funds for grantees with unique circumstances?
This process utilizes all of the FY 2008 funds allocated for Health Center Program base adjustments. There will not be an opportunity to request additional funds.