Federally Qualified Health Centers (FQHCs) are doing some of the most important work in our healthcare system — delivering care to underserved communities, often with limited resources. But between rising costs, staffing challenges, and shifting reimbursement models, maintaining strong financial health can feel like an uphill battle.
At CHC Consulting Group, we partner with FQHCs across the country to improve revenue, boost efficiency, and streamline operations. If your health center is feeling the pressure, here are practical strategies we’ve seen work time and time again — all designed to help your FQHC stay sustainable and successful.
1. Make the Most of Managed Care Opportunities
If you’re not already in the managed care space, now’s the time to consider it. Many FQHCs already have the infrastructure to support Medicaid managed care contracts, which can unlock valuable financial incentives. With the right approach, managed care can reduce the overall cost of care delivery — while helping you build long-term stability.
2. Reevaluate and Realign Your Workforce
As COVID-era grants dry up, many FQHCs are left wondering how to sustain headcount. One smart move? Reassign staff into revenue-generating roles.
Let’s say you hired a behavioral health provider or a COVID outreach worker with grant funding — those roles might now be billable under Medicaid, depending on your state. A quality review can help identify how to shift team members into reimbursable services, so you can keep great talent and generate income.
3. Tap Into Payment Reform and Alternative Revenue Streams
There’s more to revenue than fee-for-service. States and payers are moving toward value-based payment models, which reward providers for delivering better care and improved outcomes.
That means:
- Quality metrics can lead to bonus payments
- Behavioral health services might now be reimbursable
- New roles (like associate mental health practitioners or dental hygienists) may be covered under Medicaid
Staying on top of what’s reimbursable in your state is key — and something we help our clients track closely.
4. Use Your Pharmacy Program Strategically
FQHCs participating in the 340B Drug Pricing Program often leave money on the table. In fact, many only capture 20–30% of eligible prescriptions.
To fix that, start by improving how your providers talk to patients about the benefits of using your onsite pharmacy. Then, consider expanding your use of contract pharmacies — especially if you don’t have one on-site. The right contract (reviewed by an experienced legal team) can drastically improve your savings and access to affordable meds for patients.
5. Explore Cost-Effective Care Delivery Models
When hiring a pain management specialist isn’t in the budget, consider alternative services that may still address patient needs — like acupuncture or chiropractic care. These providers are often more affordable, easier to recruit, and reimbursable in many cases.
Of course, every clinical decision should be made with patient safety and medical appropriateness in mind. But with the right oversight, these alternatives can help stretch your budget while still offering quality care.
6. Don’t Overlook International Talent
Struggling to hire qualified providers? You’re not alone. Bringing in clinicians from overseas can help bridge staffing gaps — particularly in behavioral health and primary care. Many also offer the added bonus of shared language or cultural background with your patient base, improving patient experience and outcomes.
Yes, licensing and visa requirements can be tricky — but with the right guidance, this strategy can pay off.
Your Next Step: Partner with Experts Who Know FQHCs
At CHC Consulting Group, we don’t believe in cookie-cutter solutions. We understand the unique operational, financial, and regulatory pressures that FQHCs face — and we’re here to help you turn those challenges into opportunities.
Whether you need help with revenue cycle management, workforce optimization, managed care readiness, or 340B strategy, our team is ready to roll up our sleeves and work alongside you.
Let’s build a stronger, more sustainable future for your health center — and the communities you serve.
Let CHC Consulting Group guide you in transforming your healthcare IT infrastructure. Contact us today to learn more!
Ronald L. Reeves immersed himself in all components of Federally Qualified Health Centers for over a decade, before opening CHC Consulting Group LLC in 2021. The son of a well-respected Physician, Mr. Reeves understood from a young age the value of a Physician seeing patients without having to worry about the administrative aspects of a facility.
Mr. Reeves and his team at CHC Consulting Group make certain that every client is successful. The team at CHC Consulting Group understands the importance of health centers maintaining healthy streams of revenue and improving their profit margins.