Chapter 1

The Basics of Federally Qualified Health Centers

• What is an FQHC?
• FQHC Look-Alikes
• FQHC Characteristics
• Benefits of Being an FQHC
• FQHC Locations
• The Future of FQHCs
• Online Guide Summary

WHAT IS AN FQHC?

FQHCs are federally supported community-based primary health clinics that provide services to medically underserved areas (MUA) all over the United States. They refer to all organizations receiving funding under a Public Health Service (PHS) Act 330 grant and can include:

• General Community Health Centers (CHCs)
• Public Housing Primary Care plans
• Migrant Health Centers (MHCs)
• Homeless Health Care Programs
• Urban Indian and Tribal Health Centers

With more than 1,000 community health centers in mostly urban and rural settings across the country, this network of clinics brings primary care to nearly 12 million patients, over one third of whom are uninsured.  Funding for these health centers is acquired through competitive grants issued by the Department of Health and Human Services (DHHS), Health Resources and Services Administration (HRSA), Bureau of Primary Health Care (BPHC) and each is held to a rigorous standard of governance, quality and service.

FQHC Look-Alikes

The FQHC Look-Alike Program is an alternative for clinics unable to attain FQHC status.  Though look-alikes do not receive 330 funds, they do follow many of the same guidelines as FQHCs and are still eligible for some benefits such as cost-based reimbursement under Medicaid and Medicare and access to the 340(b) Federal Drug Pricing Program.

FQHC Characteristics 

The uniqueness of FQHCs lies in their structure and functional characteristics. In order for a health center to qualify as a federal community health center, it must:

• Have a public or private non-profit organizational model
• Be located in a Medically Underserved Area (MUA) or serve Medically Underserved Populations(MUP)
• Provide a comprehensive list of primary care services
• Offer a sliding scale fee plan to ensure assistance to all levels of income
• Include a Governing Board, made up of a majority of community members

A more extensive list of FQCH requirements can be found by clicking here

Benefits of Being an FQHC

One of the major benefits of being designated as an FQHC is receiving the 330grant funding.  This capital can reach up to $650,000 for new-starts and it remains the primary financial resource for most FQHCs.  In addition to this funding, FQHCs and FQHC Look-Alikes can take advantage of a series of added benefits including:

• up to $650,000 in new start money from 330 grant
• Enhanced Medicare and Medicaid reimbursement
• Medical malpractice coverage through the Federal Tort Claims Act
• Eligibility to purchase prescription and non-prescription medications for outpatients at reduced cost through the 340(b) Federal Drug Pricing Program.
• Access to National Health Service Corps
• Access to the Vaccine for Children program
• Eligibility for various other federal grants and programs

For a comprehensive list of benefits, click here