Reflection on the Recent Funding Reductions and the Desperate Need for Public-Private Partnerships

Federal public health financing has brought with it a new era, one that offers a unique opportunity. As the traditional funding channels change, the need for strong and imaginative collaborations with the public sector is increasingly apparent—and of greater importance—than at any other time.

A defining moment for public health.

The U.S. Department of Health and Human Services (HHS) revoked more than $12 billion of the pandemic funds extended to state and local health agencies in the state of Michigan in March of 2025. The funds had been initially extended to help with everything from infectious-disease response to behavioral health services.

This rollback, however, adds up across many states—Estimates of losses, particularly in New York and California, run in the hundreds of millions of dollars—leaving the question: How can we build a stronger and better adaptive healthcare system that can better withstand the unexpected?

The Case for Public-Private Collaborations

One of the most viable avenues toward a solution is the public-private partnerships (PPPs) concept. By these arrangements, public agencies and the private sector can pool their resources and expertise, creating the systems neither could succeed at on their own.

They're not just a solution for saving money; they're a proven approach for creating long-term improvement.

Oregon's approach of cooperation

Oregon is a great example of the potential for collaborations to succeed across the full continuum of healthcare. The following initiatives represent the best of the state's tireless effort:

• The HIT Commons program, in Oregon, brings stakeholders from the two sides together, promoting the adoption of common technology platforms, ultimately making the care delivery integrated and more efficient across the hospital, clinics, and community providers.

• Coordinated Care Organizations (CCOs) are organizations specifically created for selected geographic markets with a focus on delivering coordinated care for Medicaid enrollees. By consolidating local providers and community agencies, the CCOs address the health, behavioral, and dental health of their enrollees as a whole—something that not only saved dollars but also produced better results.

• The School-Based Health Centers (SBHCs) are formed with a collaborative approach that brings the school, local administration, healthcare providers, and community advocates together, making the health services most vital for the students, especially those from underprivileged locations, easily accessible.

• Healthcare Workforce Development: Oregon's workforce development initiatives, particularly those supported by the Oregon Healthcare Workforce Institute, focus on identifying and addressing workforce shortages. This is pursued through careful, data-informed planning, innovative educational partnerships, and strategic investments.

  
  

Each of these efforts demonstrates the mechanism whereby shared goals—and shared accountability—create stronger, more adaptable systems.

Moving Forward Together

The recent shifts in financing are a stark reminder that public health systems should be built for the long haul, not just created to address urgent demands. Partnerships across many sectors emerge as one of the strongest ways to ensure that progress continues uninterrupted, even when policies or budgets change.

If the public sector offers vision and infrastructure, and the private sector offers agility and creativity, then real change is possible.

What's next?

This is the time for leadership and for creativity. If you work in the world of healthcare, this is the time to break down the known silos. Whatever your position—be it with a nonprofit, a public sector organization, a health technology start-up, or a health system—find the new channels for cooperation, with creativity. Partnership goes beyond strategy; it is a critical imperative for change. If Oregon is any proof, it is one of the most powerful tools for creating deep and lasting change for those most in need.