FQHCs and FQHC Look-alikes: A Sustainable Business

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Description: FQHCs and FQHC Look-alikes: A Sustainable Business Model for RW Part C Programs Presenters: Rebecca M. Johnson, MNPL Mark Meye, CPA Community Link Consulting Your knowledgeable resource in all things FQHC www.communitylinkconsulting.org New

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slide1. FQHCs and FQHC Look-alikes: A Sustainable Business Model for RW Part C Programs<br>
slide2. Presenters: Rebecca M. Johnson, MNPL
Mark Meye, CPA<br>
slide3. Community Link Consulting Your knowledgeable resource
in all things FQHC

www.communitylinkconsulting.org<br>
slide4. 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<br>
slide5. Who’s in the room?<br>
slide6. Why now? Affordable Care Act
RW Reauthorization Uncertainty
Changes in HIV Disease<br>
slide7. 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<br>
slide8. 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<br>
slide9. 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<br>
slide10. Four Core Elements FQHC or FQHC – Look alike<br>
slide11. 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.<br>
slide12. 2. Governing with Community Involvement Impact: CHCs reflect the needs of the communities they serve.<br>
slide13. 3. Treat Patients Regardless of Ability to Pay Impact: Community Health Centers (CHCs) are the primary care safety net for the uninsured.<br>
slide14. 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.<br>
slide15. 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<br>
slide16. Additional Program Benefits National Service Corps
Enhanced Medicaid/Medicare Rates
340 B Pharmacy Access<br>
slide17. Program Requirements: Comprehensive primary care (directly or contract)
After hours care
Wrap around “enabling” services
Robust QI Program<br>
slide18. System Requirements: Ability to bill third party payors
Medicaid and Medicare electronic billing
Financial management policies/procedures<br>
slide19. 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)<br>
slide20. Financial Model Revenue

Expense

Net<br>
slide21. Expense SF424A
Personnel
Fringe
Travel
Supplies
Equipment
Contractual
Other<br>
slide22. Personnel Typically 80%

Buckets (i.e., programs)
Staffing Ratio Expectations<br>
slide23. Revenue Non-Program Revenue
Grants
Contracts
Donations/Fundraising
Other (interest, meaningful use)
Program Income<br>
slide24. Program Income Enhanced Reimbursement Rates

Access to Prospective Payment System - wrap payment for Medicaid

Cost-based reimbursement for Medicaid and Medicare<br>
slide25. Medicaid Rate Setting Year Medicaid – not intuitive

Impact – long term and potentially detrimental<br>
slide26. 340B Pharmacy Discount drug pricing program requires drug manufacturers to provide outpatient drugs to covered entities at a reduced price<br>
slide27. 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<br>
slide28. Simplified Grant Accounting Typically tied to payroll

No Double Dipping
- Charge only one grant<br>
slide29. Applying for FQHC Grants Needs Assessment
Services – Required and Optional
Business Plan
Governance<br>
slide30. Rebecca M. Johnson, MNPL Health Center Solutions, Inc. 360-319-1429 Rebecca@healthcentersoluitons.com Mark Meye, CPA<br>