Why are Shortage Designations Important?
Overview of Shortage Designations & Eligibility for
Federal/State Benefits (PDF, 41 KB)
There are a number of federal and state benefits that are linked with
Health Professional Shortage Area designations (HPSAs) and/or Medically
Underserved Area/Population designations (MUA/Ps). These benefits are
designed to encourage health professionals to work in rural and inner-city
shortage areas and increase access to primary care, dental care and mental
health services.
Provider Payment Incentives Linked with HPSAs
- Medicare
HPSA bonus (exit DHS): 10%
reimbursement for covered physician or psychiatrist services in
geographic HPSAs (primary care and mental health HPSAs
respectively)
- Wisconsin
Medicaid HPSA bonus: 20% reimbursement bonus for covered
services by primary care physicians, advanced practice nurses and
physician assistants located in a HPSA or serving recipients living
in a HPSA (includes a 50% bonus for certain Obstetric
services).
- Rural Health Clinic Certification: Certified RHCs are eligible for
Medicare
(exit DHS) and Medicaid
cost-based reimbursement for outpatient services in rural HPSAs or
rural MUAs.
Provider Recruitment Resources Linked with HPSAs or MUA/Ps
Federal Community Health Center Funding Linked with MUA/Ps
Non-profit community organizations located in MUA/Ps are eligible to
apply for federal grants under the Community
Health Centers Program
(exit DHS) (community health center, migrant
health center, health care for the homeless, public housing health
center).
Federally funded community health centers are then eligible for
cost-based reimbursement from Medicare and Medicaid as federally
qualified health centers (FQHCs).
Health Professions Training Resources Linked with HPSAs & MUA/Ps
Health professions academic training programs who apply for many of
the education and training grants from the federal Bureau
of Health Professions
(exit DHS) are given a funding preference if
they can demonstrate that they recruit students from and if their
graduates serve populations in designated HPSAs and MUA/Ps.
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