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Board hears funding options and sustainability concerns for proposed clinics; Park Nicollet foundation support cited
Summary
Presenters said SBHC operations typically rely on Medicaid billing, grants and foundation support and cited an example where a foundation covered $650,000/year for four clinics; board members urged revenue diversification and asked for a partner sustainability report due in February.
District staff and health‑system partners outlined likely funding models for proposed school‑based health centers and described ongoing work to confirm long‑term sustainability.
Presenters said most SBHCs combine Medicaid billing, federal/state grants and foundation support; clinics also seek start‑up grants for design, outreach and non‑capital costs. A health partner representative cited an example in which a foundation covered the full operating cost for four clinics — "That's $650,000 a year" — and said partners are looking to diversify that revenue. The board repeatedly asked for written detail on projected operating revenues and the partner’s internal sustainability study, which presenters said should be available by late February.
Members also discussed capital funding: staff reported recent construction bids for the conversion alternate at roughly $252,000 to convert about 1,600 square feet into clinic space. Staff recommended treating the clinic build‑out as an alternate bid item (so general renovation can proceed), with the option to add the clinic later by change order if the board needs more time to review funding and grant timelines. The board asked staff to circulate grant documents and to coordinate site visits to nearby clinics for board members who want to see operations in person before making a procurement decision.
