Healthcare Funding Instability Prevents Serving the Already Underserved

Healthcare Funding Instability Prevents Serving the Already Underserved

EDITOR’S NOTE: Research input for this report was provided by Kate Choi, a junior at Brown University and a current government affairs intern at Zelis.

Many of you may be familiar with the weeks leading up to Match Day when thousands of medical students learn where they will head after graduation for their first job as a physician. This can be an emotionally charged time not only for students but for residency programs, too, as many of them across the country are eagerly waiting to find out who they’ll be bringing on.   

Unfortunately, for numerous community health clinics partaking in the federal Teaching Health Center (THC), which is focused on training new physicians under a holistic, community-based approach, the lead-up to Match Day this year was instead filled with disappointment, as these clinics had to refrain from welcoming their share of graduating medical students to their respective residency programs.

The reason? The THC program relies on congressional appropriations for its funding – funding that is currently slated to run out at year’s end and has not yet been allocated by Congress to run past that date.

Programs like THC allow primary care resident physicians to gain extensive, community-based outpatient training, focused on serving patients at Federally Qualified Health Centers (FQHCs) and community health centers in what are considered rural, medically underserved areas of the country.

These programs meet a vital need but are falling victim to a stagnant body of lawmakers.

Our current Congress has continually struggled to pass legislation, especially that which funds various parts of the government. These difficulties were on full display during the second half of 2023 and into the early part of this year. And if things continue down the same path, the THC program is in real trouble.

Now, consider the stark differences in funding for this program versus hospital-focused residency programs. Hospitals received $18 billion in funding this year, while the THC program has a mere $215 million.

This spotlights a longstanding disparity between the healthcare needs of the U.S. population and the hospital-centric medical training that most physicians undergo. Many Americans either aren’t able to afford care in these types of settings or lack access to these types of hospitals, which leads them to seek care at community health clinics.

However, limited funding is preventing enough physicians from being trained in caring for underserved patients, making it challenging to find providers who can or will practice in these settings, as hospital-focused training doesn’t typically prepare new physicians well enough in identifying societal factors at play in patients’ lives, such as those that comprise the complex network of social determinants of health (SDoH).

A recent report published by the Association of American Medical Colleges (AAMC) projects that the U.S. will face a significant shortage of up to 86,000 physicians by 2036. The predictions are even worse for rural areas of the country.

Fortunately, graduates of the THC program have demonstrated a high likelihood to practice in medically underserved areas, emphasizing the provision of primary care services.

This subset of new doctors is critical to helping address our physician shortage problems by filling in key gaps across the country, but it is far from enough to solve them. And keep in mind that many past attempts to quell physician shortages and expand physician access in underserved areas have been unsuccessful or ineffective. Meanwhile, we’re also in an election year, when policymakers typically get even less done than usual.

In sum, the current ambiguity surrounding Congress funding certain federal programs is restricting opportunities for freshly graduated physicians to learn what providing primary care is like, using a community-centered approach. Nevertheless, the hope is that long-term financial support for the THC program – and those like it – will emerge soon, so that the underserved can be better served.

About the Author

Kate Choi is a rising junior at Brown University studying Public Health & Social Analysis/Research, who is working as a Government Affairs Intern at Zelis this summer.

Facebook
Twitter
LinkedIn

Adam Brenman

Adam Brenman is a Sr. Gov’t Affairs Liaison at Zelis Healthcare. He previously served as Manager of Public Policy at WellCare Health Plans, where he led an analyst team in review, analysis, and development of advocacy materials related to state and federal legislation/regulatory guidance. He holds a master’s degree in Public Policy & Administration from Northwestern University and has also worked as a government affairs rep/lobbyist for a national healthcare provider association.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

AI, Audits, and the Future of the Revenue Cycle

Artificial intelligence is rapidly transforming healthcare revenue cycle operations, from coding and auditing to compliance and denials. Join industry leaders Pam Warren (MaineHealth) and Raemarie Jimenez (AAPC) for a live fireside chat exploring how AI is changing workflows, workforce roles, payer-provider dynamics, and compliance risk—and what organizations should be doing now to prepare.

June 17, 2026

Trending News

Featured Webcasts

Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules – Part 2

Medicare regulations are complex and even seasoned professionals struggle to apply them consistently. Due to overwhelming demand, Dr. Hirsch returns for Part 2 of Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules to answer even more of Medicare’s most misunderstood questions, covering inpatient status, observation, SNF access, Medicare Advantage denials, and more. Join Dr. Hirsch as he provides clear, referenced answers to real-world questions submitted by your peers, helping you navigate Medicare compliance with confidence and clarity.

June 18, 2026

Reengineering Utilization Management: Building an Adaptive Model for the New Payer Era

Traditional utilization management models can no longer keep pace with regulatory shifts, payer scrutiny, and operational pressures. In this webcast, Tiffany Ferguson, LMSW, CMAC, ACM, ACPA-C, introduces an Adaptive Model strategy that modernizes UM through role specialization, technology-driven workflows, and proactive, team-based processes. Attendees will learn how to restructure programs to improve efficiency, strengthen clinical collaboration, and enhance financial performance in a rapidly changing healthcare environment.

May 20, 2026

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

Trending News

Celebrate Lab Week with MedLearn! Sign up to win one year of our Laboratory All Access Pass! Click here to learn more →

Have a Medicare regulation question you’d love Dr. Hirsch to answer? Now is your chance! CLICK HERE to learn more→

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

This Memorial Day, we honor those who gave all for our freedom. Take 20% off sitewide through May 29 with code MEMORIAL26 at checkout

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24