In Brief
- Rethinking student health center funding can uncover cost savings and open up new ways for campus health services to become more effective and financially sustainable.
- Evaluating the funding model, optimizing school-sponsored insurance plans (SHIPs), and introducing third-party billing can reduce costs while boosting the quality of care.
- When student health thrives, so do students, leading to higher retention, stronger outcomes, and a more vibrant campus community.
As leaders work to optimize financial sustainability during these challenging times, one often-overlooked opportunity lies in the mission-critical support services provided by the student health center. With a refreshed strategy, campus health services can become more effective and financially sustainable, while continuing to enable student success.
Rethink the funding model
Most student health centers operate under a hybrid funding model: central allocations, student health fees, SHIPs, and modest service fees. Yet, few institutions actively evaluate this model for cost efficiency. As a result, many are absorbing more of the cost of care than necessary.
This matters because wellness is essential for learning. Campus health services directly support the academic mission by fostering holistic student well-being. Ensuring their sustainability is not just a financial issue — it’s a strategic one.
Optimize SHIP reimbursement
SHIPs often reimburse student health centers according to below-market fee schedules. While this may be intended to reduce financial barriers to care or keep premiums low, it may not reflect the most relevant cost drivers and can limit the center’s ability to grow and innovate.
By analyzing SHIP utilization, prioritizing equity in cost-sharing, and applying strategic pricing, institutions can unlock significantly more value from their SHIP. This doesn’t mean shifting costs to students. It means aligning incentives to ensure the plan supports the care students actually use.
Introduce third-party billing
Many students are covered by private insurance, yet most student health centers don’t bill third-party payers due to perceived operational hurdles. With the right planning, this can change.
Third-party billing can enhance continuity of care, improve data-driven decision making, and reduce regulatory risk. It also creates a new revenue stream that can fund expanded services, improve access, and support long-term sustainability.
A call to action
Student health centers are mission-critical. They help students stay healthy, stay enrolled, and succeed. By optimizing SHIP reimbursement and introducing third-party billing, institutions can strengthen these services, ensuring they thrive as a strategic asset — not a financial liability.