Because Health Care is a Right, Not a Privilege

Increased Demand and Decreased Capacity:

Challenges to the McKinney Act's Health Care for the Homeless Project - July 1997

Ten years after its creation through the Stewart B. McKinney Homeless Assistance Act, the federal Health Care for the Homeless Program supports 123 grantees that provide primary care and related services to nearly 450,000 homeless persons annually. Health Care for the Homeless (HCH) is widely recognized as a very successful McKinney Act program.

However, changes in the health care marketplace, in public policy, and in the face of homelessness itself are creating new demands for health services for homeless people even as resources to meet that demand diminish. While HCH has never had sufficient resources to address the health issues of all homeless people, distressing new patterns of insufficiency are emerging.

In April 1997, the federal Bureau of Primary Health Care issued a Request for Proposals that allowed existing HCH grantees to apply for a modest three percent increase in grant funding, to be used for expansion of their activities. One hundred and eight HCH grantees responded by mid-June. Collectively, their brief proposals comprise the best current national data set on homelessness.

This report analyzes the HCH proposals and provides a snapshot of homelessness in America in the early summer of 1997, as seen by experienced, front-line providers of care. Among its key findings:

  • Homelessness is increasing. On average, HCH projects report a 15.9 percent growth in homelessness in their communities since last year.

  • Overwhelmingly, HCH projects report that changes in the welfare system are responsible for the growth in numbers of homeless persons.

  • Growing numbers of uninsured persons seek HCH services. Overall, HCH programs report a 35 percent increase in the numbers of patients who are uninsured. This, too, is attributed to changes in the welfare system.

  • Specific health problems are increasing among homeless people, particularly HIV/AIDS, tuberculosis, substance abuse, chronic mental illnesses, diabetes mellitus and hypertension.

  • The HCH program has experienced a 30 percent increase in the numbers of homeless individuals seeking care. Among these, families and children make up the largest group (55 percent).

  • Financial support for HCH projects is diminishing. The three percent grant increases requested in these proposals will not support the increasing costs of current operations, but must go to expansions of service. Thirty percent of HCH projects report decreasing revenue from non-federal grant sources. Third-party (insurance) revenue is also down, due to Medicaid managed care and increasing numbers of uninsured patients.

  • Consequently, 25 percent of HCH projects have experienced direct reductions in staffing levels.

  • HCH projects have nevertheless managed to increase the numbers of patients seen, but are unable to serve all eligible persons in need. Projects report growth in daily clinic waiting lists, increased waiting time for appointments, and turn-aways or referrals of potential patients to other providers.

  • Overwhelmingly, HCH projects will apply the three percent grant increases to basic primary care services rather than to the ancillary services that have been one key to the program's success.

For more information on Increased Demand and Decreased Capacity or to get copy of the full report, e-mail the National Health Care for the Homeless Council at council@nhchc.org.

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