Federally-qualified health centers
Local governments can invest in this strategy using State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan Act (ARPA).
- This strategy can help residents access health services. The U.S. Department of Treasury has indicated that strategies that help achieve this outcome are eligible for the use of Fiscal Recovery Funds.
Program overview
Providing health care to vulnerable patients: Federally-qualified health centers (also known as Community Health Centers) provide comprehensive, culturally competent, high-quality primary care to patients regardless of their ability to pay. These health centers increase access to health care and improve health outcomes.
Nonprofit or public clinics providing primary care services: Community Health Centers are administered by private nonprofit entities or public agencies (e.g., state or local health departments) that offer primary care services for patients. These services include well visits, annual physicals, immunizations, treatment of acute and chronic illnesses, nutrition, and basic women’s health care, in addition to pharmacy, mental health, substance use disorder, and dental services.
Receiving federal recognition and support: Nonprofit and public healthcare providers apply to become a federally-qualified health center through the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA). To be eligible, applicants must serve at least one Medically Underserved Area or Medically Underserved Population. Once qualified, health centers receive dedicated federal funding and may receive additional state funding as well.
Additional benefits for Community Health Centers: Sites that earn designation and funding from HRSA as Community Health Centers are also eligible to receive Prospective Payment System (PPS) reimbursement for Medicare and Medicaid, offer discounted prescription drugs, provide free vaccines for uninsured and underinsured children, recruit medical providers through the National Health Service Corps, and receive HRSA-supported training and technical assistance.
Governed by health center boards: Federally-qualified health centers are required to be managed by boards of 9-25 members who oversee finance, legal, human resources, evaluation, planning and resource development for the center. A majority of the board members must be patients who are served by the given health center. In addition, a maximum of half of the board members can be individuals who earn more than 10% of their annual income from the healthcare industry. Remaining board members should be representatives of the community served or experts in fields relevant to health care center operations.
- Strategies
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Increasing access to health care
- Cost per Participant
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Not available
Multiple studies with rigorous designs demonstrate that federally-qualified health centers are a well-supported strategy for increasing access to health care, improving health outcomes, and decreasing health-related disparities.
- A 2016 research synthesis identified federally-qualified health centers as a scientifically supported strategy for increasing access to health care and improving health outcomes.
Start with comprehensive needs assessment and community-oriented planning: Community Health Centers should conduct a needs assessment to examine factors affecting access to care and service utilization in their area (e.g. insurance coverage, language barriers, transportation access). In addition, Community Health Centers should conduct community outreach before opening and at regular intervals once operating. By meaningfully engaging with the local community, Community Health Centers can generate buy-in and set priorities that reflect the needs of the community and population served.
Select an appropriate location for the CHC: When identifying a potential site for Health Center Program designation, it is important to ensure minimal overlap between the new center and any existing Community Health Centers, either in terms of target population or geographic coverage. This increases a site’s likelihood of securing HRSA funding. It is also important to select a location for the center that is accessible to target patient populations, such as near public transportation hubs.
Incorporate evidence-based practices in healthcare delivery: Community Health Centers should embrace a coordinated care approach to health care, which has been identified as a key strategy to improving the effectiveness and efficiency of health care services. Care coordination involves aligning all providers working with a given patient to ensure that knowledge is shared efficiently and accurately and help patients understand why they may be interacting with different medical providers, among other benefits. In addition, Community Health Centers can better serve patients by working with other community-based organizations to address social determinants of health.
Offer competitive employment opportunities: Given industry-wide shortages of healthcare professionals, Community Health Centers need to offer competitive compensation, establish an efficient hiring process, ensure strong values alignment from candidates, assist employees in navigating credentialing requirements, and develop a recruitment pitch that emphasizes the opportunity to do mission-driven work and shape the direction of a new health center.
Consider applying for supplemental funding: In order to expand services offered or the area and populations served, Community Health Centers may apply for grants to supplement the baseline Health Center Program funding. HRSA offers a range of grants, including those dedicated to improving care for certain medical conditions, increasing access to technical support, or expanding or services into new locations (e.g. schools).