Diversifying Funding Streams in Public Health: Study Findings Highlight the Importance of Revenue Diversification

The study “Not Only How Much But How: The Importance of Diversifying Funding Streams in a Reimagined Public Health System” by Mac McCullough, a professor in the School of Public and Population Health and associate director for community engagement and impact, was published in the June issue of Health Affairs. This is one of the first studies to explore revenue diversification in public health from a technical perspective on a national scale. McCullough worked with co-authors from the University of Minnesota Center for Public Health Systems and the National Association of County and City Health Officials on this research.

The team analyzed data from cities and counties collected before the COVID-19 pandemic to establish a yearly diversification index for local health departments. Their findings revealed that health departments serving larger populations tend to have a more evenly distributed array of funding sources, indicating a higher level of revenue diversification. This study highlights the importance of examining revenue portfolios within the public health system as it suggests that organizations with more diverse funding sources may be better equipped to withstand financial strain.

McCullough presented his research at the recent Reimagining Public Health virtual event, where he participated in discussions surrounding the central theme of the June issue: “What might it look like to reimagine public health care and the systems that support the health of the community?” Through his research, McCullough explores how investments in public health and social services can have a positive impact on population health. He teaches courses on finance, policy, and management in health care and public health, further contributing to the conversation on improving public health systems.