[Congressional Record Volume 153, Number 167 (Wednesday, October 31, 2007)]
[Senate]
[Pages S13625-S13626]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Ms. STABENOW (for herself and Mr. Cochran):
S. 2270. A bill to include health centers in the list of entities
eligible for mortgage insurance under the National Housing Act; to the
Committee on Banking, Housing, and Urban Affairs.
Ms. STABENOW. Mr. President, today I am pleased to introduce the
Community Health Center Capital Investment Act. I also thank my
colleague, Senator Thad Cochran of Mississippi, for joining me in
sponsoring this critical legislation. Health centers in both our states
are committed to serving more people, and our legislation will give
them a little help to do just that.
One of our most important investments in our health-care system is
[[Page S13626]]
funding the Community Health Center program. According to the National
Association of Community Health Centers, health centers provide
comprehensive primary and preventive care to over 16 million people--
including nearly 7 million uninsured--each year in more than 6,000
urban and rural communities.
One of my initial pledges when I first ran for the Senate was to
increase the number of community health centers in Michigan. Since I
became a Senator, there are new 15 community health centers or access
points in Michigan. I am also so pleased to have had the support of so
many of my colleagues in increasing funding for community health center
grants. This year, 64 Senators signed the Stabenow-Bond funding
request, and we were pleased that the Senate Labor-HHS-Education
Appropriations bill will provide an additional $250 million increase
for community health centers. This increased funding will help reach
nearly 2 million people next year.
But even as we provide assistance to community health centers for
operations, we cannot forget their capital needs such as renovating
older buildings, purchasing new equipment, and investing in health
information technology. But in general, without specific authorization
in Federal law, health centers cannot use current grant dollars for
construction, modernization, or expansion of facilities.
According to NACHC, one out of three health centers currently
operates in buildings that are 30 years old or older. The average cost
of a facility project is estimated to be $2.3 million. Many centers
borrow funds for these purposes at rates that could be, and should be,
lower.
Kim Sibilsky, the executive director of the Michigan Primary Care
Association, wrote me: ``The majority of Michigan's 34 community Health
Center organizations were founded in the middle and late 1970s, and
many of their 160 community-based sites are located in facilities that
require renovation to meet the changing health care needs of their
communities. More readily available renovation dollars will assist
Michigan Health Centers in improving access to quality health care for
Michigan residents.''
One simple solution would be granting access for community health
centers to use the facility assistance programs at the Department of
Housing and Urban Development. If health centers were able to access
HUD's loan guarantee and mortgage insurance program through the Title
XI Small Medical Group Facilities Program, they would have an important
tool with which to address facility concerns.
The legislation we are introducing today is a small clarification to
the Title XI Program to ensure that health centers can obtain mortgage
insurance under the program. But this small change will have a huge
reward for our safety-net providers. It will allow them to lower the
interest rate on the money they borrow, and therefore lower the cost of
the project for the center. This savings will be translated directly to
increased patient care.
I ask unanimous consent that the letter of support be printed in the
Record.
There being no objection, the material was ordered to be placed in
the Record, as follows:
National Association of
Community Health Centers, Inc.,
October 25, 2007.
Hon. Debbie Stabenow,
Hart Senate Office Building,
Washington, DC
Hon. Thad Cochran,
Dirksen Senate Office Building,
Washington, DC
Dear Senator Stabenow and Senator Cochran: On behalf of the
National Association of Community Health Centers, the
advocate voice for our nation's Community, Migrant, Public
Housing and Homeless Health Centers and the 16 million
patients they serve, I am writing to offer our strong
endorsement of your bipartisan legislation the ``Community
Health Center Capital Investment Act.''
America's Health Centers commend you for your leadership in
introducing this important legislation to expand access to
federal grants for capital improvements in the nation's 1,100
federally qualified health centers. As the health care home
for 16 million people in more than 6,000 urban and rural
locations, health centers provide high quality, comprehensive
primary and preventive care for children and adults. Each
year as the number of patients served at health centers
continues to increase, so will the need for modernization and
construction of new health center facilities.
Your proposal is a significant step forward toward
improving access to primary health care across the country. A
recent survey in twelve states found that nearly two-thirds
of health centers need to expand or modernize their current
buildings, while some areas need to construct new facilities
to treat the growing number of patients in their communities.
Today, health centers have limited access to federal grants
for facility improvements and struggle to raise sufficient
capital to meet the $2.3 million average cost of facility
projects. By ensuring that health centers have access to the
Housing and Urban Department's loan guarantee and mortgage
insurance program through the Title XI Small Medical Group
Facilities Program, health centers will have an important
tool to address these facility concerns.
We greatly applaud your legislation to ensure that the
nation's health centers will be authorized to access HUD's
loan guarantee and mortgage insurance programs for the
construction, modernization and expansion of their
facilities. Your leadership on this issue will significantly
improve the health and well-being of our nation's medically
underserved.
Again, thank you for your sponsorship of the ``Community
Health Center Capital Investment Act.'' America's Health
Centers are proud to endorse your legislation and offer their
active support in helping to secure its enactment.
Sincerely,
Craig A. Kennedy, MPH,
Associate Vice President,
Federal and State Affairs.
Mr. COCHRAN. Mr. President, community health centers provide care for
over 15 million patients nationwide each year and are a critical part
of our country's health care network. Many of these centers operate out
of buildings that are in need of modernization or expansion. Current
law limits access to federal funds to community health centers for any
type of construction, modernization, or expansion. Therefore, the only
funds available to community health centers for facilities are through
congressionally directed spending.
We are introducing a bill today to include community health centers
as eligible recipients for funding through the Department of Housing
and Urban Development's Small Medical Group Facilities Program. Under
this competitive program, community health centers will be able to
access loan guarantees and mortgage insurance, thus giving them a tool
to address their facility concerns and by doing so, better serve their
patients.
I am pleased to offer this legislation that will help improve access
to and quality of community health center care.
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