Commonwealth Fund February 26, 2024
TOPLINES
Transitioning to value-based payment could help federally qualified health centers by making funding more predictable, freeing up resources for them to innovate, and supporting greater investment in infrastructure
Federally qualified health centers are primed to join the value-based payment movement but worry about making a successful transition
Federally qualified health centers (FQHCs) provide comprehensive primary care and preventive services to more than 31.5 million patients across the United States, regardless of their ability to pay. FQHCs have a unique financing structure that relies on federal grant funding and low Medicaid reimbursements. As a result, they operate on thin, often unpredictable financial margins, which limits their ability to implement and sustain improvements.
Value-based payment (VBP) models could help. Under VBP...
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