Issue Brief | Dec 14, 2015

Implementing State Payment Reform Strategies at Federally Qualified Health Centers (FQHCs)

Beth Waldman and Mary Beth Dyer, Bailit Health Purchasing, LLC and James Waldinger, Public Consulting Group

Federally Qualified Health Centers (FQHCs) traditionally provide health care services primarily to low-income individuals who are covered by Medicaid or who are uninsured. As state Medicaid programs increase their focus on value-based payment, it is important to consider how FQHCs may participate in payment reform strategies. Through their focus on improved health outcomes, patient satisfaction, and access to appropriate care, alternative payment methodologies (APMs) can benefit FQHCs, the state purchaser, and most importantly Medicaid beneficiaries. This brief describes a number of state-level payment reform strategies that include FQHCs and offers strategies and considerations for states and FQHCs alike.