Federally Qualified Health Centers (FQHCs)

Creating a positive impact for FQHCs and the communities they serve

We understand the challenges FQHCs are facing across the country and we know the steps necessary to solve them. With continuing workforce shortages that are limiting access to care and intensifying health disparities, funding for Federally Qualified Health Centers is crucial to enhancing healthcare equity, quality, and access for the communities they serve.

Providing innovative funding strategies

States are permitted to use revenues generated from state or local taxes imposed on healthcare providers to draw down federal matching funds (or FFP) as long as those taxes meet certain federal requirements. States routinely use these provider tax revenues to support Medicaid payment increases to the taxed providers. To qualify for a federal match, among other things, the taxes must be imposed on providers or services that fall into one of 19 classes of permissible provider taxes.

The problem? FQHCs are not included as a permissible provider tax class.

The solution? Request approval from HHS to add FQHCs as a permissible provider tax class.

Securing Federal and State Support for FQHC Services Assessments

Phase 1: Federal Support

Sellers Dorsey can develop and support NACHCs’ federal outreach strategy to request a new permissible tax class for FQHCs. Once federal support is secured, the Firm can then assist NACHC and federal officials in all aspects of implementation, including drafting regulations to include the new permissible tax class.

Phase 2: State Support

Sellers Dorsey can model and draft an FQHC services assessment for state PCAs, as working to build an advocacy strategy to gain support from state legislative and administration officials. The Firm can assist state officials with all aspects of seeking federal approval from CMS. After approval is attained from CMS, Sellers Dorsey can support FQHCs and state officials in the implementation of a statewide FQHC services assessment.