Evaluating the Financial Impact of a Student-Run Free Clinic in Alabama

Sarika Mullapudi; Eric Chen; John Laue; Andrew Van; Caroline Harada; Natasha Mehra; Carlie Somerville

doi:10.59586/jsrc.v12i1.614

Sarika K Mullapudi University of Alabama at Birmingham Heersink School of Medicine
Eric Chen University of Alabama at Birmingham Heersink School of Medicine
John S Laue University of Alabama at Birmingham Heersink School of Medicine
Andrew Van, MS University of Alabama at Birmingham Heersink School of Medicine
Caroline Harada, MD University of Alabama at Birmingham Heersink School of Medicine
Natasha Mehra, MD University of Alabama at Birmingham Heersink School of Medicine
Carlie S Somerville, MD University of Alabama at Birmingham Heersink School of Medicine

DOI: https://doi.org/10.59586/jsrc.v12i1.614

Keywords: cost savings, community health services, health care costs, health services accessibility

Abstract

Background: Given significant existing barriers to healthcare, student-run free clinics (SRFCs) play a critical role in serving their community by reducing the burden of healthcare costs for the patients they serve. The objective of this study was to characterize the financial impact of free services provided by our SRFC in 2023 and understand its role and significance in community health.

Methods: The annual expenditure was calculated based on our SRFC’s spending on supplies, laboratory tests, medications, patient transportation, interpretation, and security costs. Free services provided by the clinic to patients included clinical appointments, medications, and laboratory tests. The value of primary and specialty care appointments was calculated based on 2023 Medicare reimbursement rates. The value of laboratory tests was based on the laboratory’s standard self-pay rates, and the value of free medications was calculated using the lowest out-of-pocket GoodRx price in the Birmingham area. The primary measure was the financial impact of SRFC services in one calendar year.

Results: The SRFC provided a total of 744 clinic visits in 2023. The clinic’s operating expenditure was $59,683. The total value of free services from the SRFC included $99,207 in clinic visits, $92,848 in laboratory tests, and $25,205 in free medications. After subtracting the operating expenditures from the value of free services, the SRFC saved the community $157,370 in healthcare services.

Conclusions: Descriptions of an SRFC’s financial impact are a powerful tool that can be used to advocate for the expansion and development of health professions school’s SRFCs. Quantifying the financial impact of SRFCs provides a reproducible framework for demonstrating their essential role in reducing healthcare costs and advancing equitable access, gaining insights that can guide and strengthen free clinics nationwide.