Providence (R.I.) Community Health Centers is closing its Olneyville Health Center on July 31, The Providence Journal reported on July 18.
A spokesperson for the federally qualified health center told the news outlet that the closure of the clinic is temporary and is due to a national shortage of primary care providers.
An internal memo from Providence Community Health Centers CEO Merrill Thomas said that an inadequate state Medicare reimbursement rate and "manufacturer attacks on our 340B Drug Pricing Program" placed the FQHC "in an unsustainable negative financial position," which has led to layoffs and the closure of the Olneyville Health Center, according to the report.
On June 28, Providence Community Health Centers laid off about 40 employees, according to the Journal. Most of those employees were caseworkers in its Accountable Entity.
Employees from the Olneyville Health Center will move to other sites owned by Providence Community Health Centers, according to the report. A reopening date for Olneyville will be dependent on Providence Community Health Centers' ability to hire more primary care providers.
The spokesperson said they are negotiating with the state to improve Medicaid reimbursement rates, according to the report. About 70% of its patients are insured by Medicaid.