1. FQHCs and FQHC Look-alikes: A Sustainable Business Model for RW Part C Programs

2. Rebecca M. Johnson, MNPL Mark Meye, CPA
Presenters:
Rebecca M. Johnson, MNPL
Mark Meye, CPA

3. Community Link Consulting
Your knowledgeable resource
in all things FQHC

4. New Access Point, Service Area Competition Budget Period Renewal Ryan White Grants & Program Support FQHC and Look-alike Grantee Support & Services  Financial Management Cost Reporting, UDS, FFR Fee Schedule Review Corporate Compliance / Compliance Reporting Management / Staff / Board Training Strategic Planning Residency Development IT Infrastructure Development and Support

5. Who’s in the room?

6. RW Reauthorization Uncertainty
Why now?
Affordable Care Act
RW Reauthorization Uncertainty
Changes in HIV Disease

7. Objectives: By the end of the presentation you will:
Understand the benefits of becoming an FQHC or FQHC LA
Know how the programs differ
Know which model best supports your program
Have basic information to begin strategic discussions about becoming an FQHC/FQHC-LA
Have a road map for pursuing FQHC/LA status

8. Federally Qualified Health Center’s Mission
Improve the health of underserved communities and vulnerable populations by assuring access to comprehensive, culturally competent, quality primary health care services

9. Ultimate Goal…
Improving health status (i.e., patient outcomes) of all populations in the target area served by a health center, especially underserved.
PIN-96-23

10. Four Core Elements FQHC or FQHC – Look alike

11. 1. Reach Medically Underserved Communities
Impact: CHCs serve populations who otherwise would not get the care they need; CHCs see publicly insured and uninsured patients in areas where there is a lack of providers and/or providers willing to see this population.

12. 2. Governing with Community Involvement
Impact: CHCs reflect the needs of the communities they serve.

13. 3. Treat Patients Regardless of Ability to Pay
Impact: Community Health Centers (CHCs) are the primary care safety net for the uninsured.

14. 4. Provide a Comprehensive Scope of Services
Impact: No other model of primary health care service delivery offers more services in one location or targets more special populations through one model of care.
» Reduce/eliminate health disparities.
» Help vulnerable patients successfully manage chronic conditions.
» Save money in the health care delivery system by keeping patients out of the hospital and ER.

15. Program Benefits – FQHC Only
Grant Funding for Operations under Section 330 of the Public Health Services Act -- $650,000 for New Access Point
FTCA – Federal Tort Claims Act Coverage

16. Additional Program Benefits
National Service Corps
Enhanced Medicaid/Medicare Rates
340 B Pharmacy Access

17. Program Requirements:
Comprehensive primary care (directly or contract)
After hours care
Wrap around “enabling” services
Robust QI Program

18. System Requirements: Ability to bill third party payors
Medicaid and Medicare electronic billing
Financial management policies/procedures

19. Shared Compliance Requirements:
Annual Uniform Data Set (UDS) Report (similar to RDR/RSR)
Grant Cycles (similar to Part C)
Cost Reports
Financial Audit (A-133)

20. Financial Model
Revenue
Expense
Net

21. SF424A Personnel Fringe Travel Supplies Equipment Contractual Other
Expense
SF424A
Personnel
Fringe
Travel
Supplies
Equipment
Contractual
Other

22. Typically 80% Buckets (i.e., programs) Staffing Ratio Expectations
Personnel
Typically 80%
Buckets (i.e., programs)
Staffing Ratio Expectations

23. Revenue Non-Program Revenue Program Income Grants Contracts
Donations/Fundraising
Other (interest, meaningful use)
Program Income

24. Program Income Enhanced Reimbursement Rates
Access to Prospective Payment System - wrap payment for Medicaid
Cost-based reimbursement for Medicaid and Medicare

25. Medicaid Rate Setting Year
Medicaid – not intuitive
Impact – long term and potentially detrimental

26. 340B Pharmacy
Discount drug pricing program requires drug manufacturers to provide outpatient drugs to covered entities at a reduced price

27. Benefits of 340B Program
Reported savings that range between 25-50% for covered outpatient drugs as a result of the low 340B prices
Reduces the price of medications for patients
Expands the number of drugs on formularies
Increases the number of indigent patients served
Expands other services offered to patients by the entity – flexible “profit” – unlike RW

28. Simplified Grant Accounting
Typically tied to payroll
No Double Dipping
- Charge only one grant

29. Applying for FQHC Grants
Needs Assessment
Services – Required and Optional
Business Plan
Governance

30. Rebecca M. Johnson, MNPL Health Center Solutions, Inc
Rebecca M. Johnson, MNPL Health Center Solutions, Inc Mark Meye, CPA