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Benefits of FQHC Designation

What are the Benefits of FQHC Status for a Community and an Organization Considering Such a Development?

The direct benefits to the community include: the FQHC is a community-based organization so the community directs services and other decision related to clinic operations, the center will be a medical home that provides comprehensive health services to the medically underserved so non-emergent cases in hospital emergency rooms will be reduced, increased economic impact of federal and state investments for services and potential for future federal investment, reduction in the number of uninsured due to FQHC assistance with Medicaid and Children's Health Insurance Program enrollment, less financial strain on Medicare patients due to deductible waiver if services are provided at FQHC, free immunizations for uninsured children, and referral arrangements for FQHC patients provides better access to other health providers.

The direct benefits to the organization considering FQHC development include: Access to federal grants to support costs of uncompensated care, enhanced revenue due to the Prospective Payment System reimbursement for services to Medicaid and Medicare patients, access to medical malpractice coverage under Federal Tort Claims Act (FTCA), PHS Drug Pricing Discounts for pharmaceutical products, federal and state grant support and federal loan guarantees for capital improvements, access to on-site Department of Health and Human Services outstationed eligibility workers to provide Medicaid and CHIP enrollment services, reimbursement by Medicare for “first dollar” of services because deductible is waived if FQHC is providing services, improvement of general public health because of access to Vaccines for Children (VFC) Program (for uninsured children), and access to National Health Service Corps (NHSC) Placements to provide medical dental and mental health provider staff.

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