What Is Section 330 Funding for Health Centers?

Section 330 of the Public Health Service Act is the legislative foundation for the federal Health Center Program, administered by the Health Resources and Services Administration (HRSA). Its purpose is to improve the health of underserved communities by increasing access to primary and preventive care. The program provides “330 grant” funding to safety-net providers who meet specific requirements to support care for those facing barriers to medical attention. This financial support allows health centers to offer services to everyone, regardless of their insurance status or ability to pay, addressing health disparities.

Health Center Program Grantees

Section 330 funding is directed to nonprofit or public entities that serve high-need populations. The Health Center Program authorizes grants for four main categories of health centers that form a national network of community-based providers.

• Community Health Centers are the most common type, located in areas with limited access to primary care and serving the general population of a specific service area.
• Migrant Health Centers focus on the health challenges of migratory and seasonal agricultural workers and their families, offering culturally appropriate and conveniently located care.
• Health Care for the Homeless Programs deliver care to individuals and families who lack stable housing, providing services on the streets, in shelters, and at fixed clinic sites.
• Health Services for Residents of Public Housing grantees are located in or near public housing to address the specific health needs of residents and remove access barriers.

Core Requirements for Funding

To receive and maintain Section 330 grant funding, an organization must satisfy several programmatic requirements established by federal statute.

• The organization must serve a federally designated Medically Underserved Area (MUA) or a Medically Underserved Population (MUP). An MUA is a geographic area with a shortage of primary care, while a MUP is a subgroup of people facing economic, cultural, or linguistic barriers to care.
• A health center must be governed by a community-based board of directors, with at least 51% of its members being patients of the center. This patient-majority board ensures the organization is responsive to community needs.
• Health centers must provide a comprehensive set of services, including primary medical care, diagnostic lab and radiology, preventive services like immunizations, and pharmaceuticals. They must also offer dental, mental health, and substance use disorder services, either directly or through contractual arrangements.
• A sliding fee discount program must be implemented. This is accomplished through a scale that offers discounts based on family size and income relative to the Federal Poverty Guidelines, ensuring no one is denied care due to inability to pay.

The Grant Application Process

Securing a Section 330 grant is a competitive process. Potential applicants must first identify an available funding opportunity announced by the Health Resources and Services Administration (HRSA). These are posted on Grants.gov and the HRSA website.

Next, the organization assembles an application package. This includes standard federal forms, a project narrative, and a budget justification. The narrative must describe how the applicant will meet all programmatic requirements, including its needs assessment, proposed services, and governance structure.

The completed application is submitted electronically through Grants.gov or HRSA’s Electronic Handbooks (EHBs). Applicants must register with these systems well in advance of the deadline, as registration can take several weeks. After submission, applications undergo an objective review by independent experts before HRSA makes funding decisions.

Operational Benefits of Designation

Receiving a Section 330 grant provides direct funding and several operational benefits that enhance a health center’s financial stability. One benefit is eligibility for medical malpractice liability protection under the Federal Tort Claims Act (FTCA). This program covers the health center and its employees, with the federal government acting as the primary insurer, which saves the center from high commercial insurance costs.

Designation as a Section 330-funded entity also grants access to the 340B Drug Pricing Program. This allows health centers to purchase outpatient prescription drugs from manufacturers at significantly reduced prices. The savings can be used to lower medication costs for low-income patients or to expand the center’s services.

Finally, Section 330 grantees are designated as Federally Qualified Health Centers (FQHCs), making them eligible for enhanced reimbursement from Medicare and Medicaid. FQHCs are paid under a Prospective Payment System (PPS) designed to cover the actual costs of providing care. This cost-based reimbursement results in higher payments than private practices receive, providing a more stable revenue stream.