Tag Archives: referral management

Three Best Practices For Large Hospitals To Improve Patient Experience Through Optimal Referral Management

It is crucial for large hospitals to build a high performing referral network as they serve a huge community by providing them services in primary care and a variety of specializations. Large organizations spend months or even years building a referral management solution for their network which appears to have the right components on paper, but the patient referral volume continues to decline.

Usually, the problem with such Large Hospitals is that they overlook small but impact operational issues that are necessary to retain patients within their network. Making just a few changes to the existing referral strategy can have a huge impact on

  • Retaining more number of patients within the network
  • The quality of care given to their patients

Here are the 3 best practice solutions that can create a high impact in improving the existing referral management process in Large Hospitals.

1. Putting the patient first to build loyalty

The primary step to retain patients within the network is to accommodate their preferences. It is important for the health system to consider patient’s preferences before initiating a referral. Most patients prefer to choose the receiving provider based on a number of convenience factors like insurance, language, availability and distance. When a patient is paired with the receiving provider who best matches his/her preferences, it is more likely for the patient to visit the provider. Also, when the patient’s experience with the referral is good, it is more likely for the patient to stay within the network.

HealthViewX Patient Referral Management Software takes care of updating your provider database with details of specialists newly added to the network. The “Intelligent Provider Match” feature allows physicians to filter and search providers based on patient’s convenience factors like operating hours, location, language, insurance, distance etc.

2. Supporting EMR/EHR Interoperability to improve care coordination

A patient may need to see a specialist in a different facility within the same hospital. In most cases, the EMRs will be different. EMR Interoperability will allow facilities to share the patient’s records in real time without compromising patient security or privacy. Providers, patients and insurers all benefit from increased access to the patient’s medical information.

Also, interoperability is an essential part of the Government’s Meaningful Use Stage 2 requirements. Meaningful Use Stage 2 will affect Medicare payouts for health care providers in stages, eventually leading to reduced payouts to all providers that take Medicare and do not follow the guidelines.

Seamless functioning between EMRs like Epic, Cerner, Athena Health, Greenway Health, Allscripts, Nextgen, etc is important. HealthViewX Patient Referral Management Software acts as a bridge and enables seamless communication of data between the referring and receiving ends.

3. Tracking referral data to know where to make changes in the referral network

Tracking referral data is often the most underestimated and impactful component of a high-performing network. By having real-time visibility of the complete referral ecosystem, health systems can gain actionable insights on how to take meaningful decisions on referral process, provider relationships, etc. Large Hospitals should be able to track referrals in various status, referral loop closures, percentage of referrals flowing in and out of network, referrals sent to different specialities, insurance provider, etc.

HealthViewX Patient Referral Management has a customizable referral-centric dashboard that helps in tracking the number of referrals and gives complete information about the referrals processed, missed, scheduled etc. It can also be customized for different locations based on the priority of the large hospital.

HealthViewX Patient Referral Management solution smooths the referral process and solves most operational challenges for Large Health Systems. Do you want to know more about HealthViewX HIPAA-compliant Patient Referral Management solution? Schedule a demo with us.

HealthViewX Blogs rated in Top 100 Healthcare Blogs

How Can Large Enterprise Hospitals Tackle Operational Problems Effectively?

Did you know? There are about 8000+ large enterprise hospitals in U.S. How is a hospital classified as a large enterprise hospital?

Hospitals which have typically 500 or more beds are categorized as Large Enterprise Hospitals. They are capable of serving the whole population in the community by offering them wide range of services related to primary care and specialties. Some larger hospitals offer a combination of acute and long-term care services while also providing research opportunities in some cases and accommodating a variety of specializations.

Operational challenges faced by  Large Enterprise Hospitals

Considering the huge number of patients in such hospitals, the patient referral volume is also high. In order to improve patient satisfaction and retain patients within their network, a large enterprise hospital must have a seamless referral process. Below are the most common operational challenges that affect the patient referral workflow in large enterprise hospitals.

  1. Handling multiple EMR/EHRs – Large Enterprise Hospitals and Health Systems that are formed as part of mergers and/or acquisitions tend to handle multiple EMRs. They  spend millions of dollars having to migrate from one EMR/EHR to another. It is also possible that if one EHR faces a down time, the entire patient referral workflow is affected. Data security in communication between multiple platforms is crucial to protect patient interests. In a merger or acquisition, patient experience must never be compromised despite the backend operational challenges that may occur. Seamless functioning between EMRs like Cerner, Athena Health, Greenway Health, Allscripts, Nextgen, etc is important.
  2. Training their staff – Staff in each division in the hospital might be comfortable with using a different EMR system. The user interface and familiarity affects speed of operations. The health system has to train and migrate all staff to a single EMR which costs millions of dollars and time to get the staff up-to-speed.
  3. Patient no-show rates – When patients miss/forget or do not show up for appointments, it results in revenue loss for the hospital. Patients miss appointments due to various reasons like no reminders, waiting time, better specialist within the locality, reputation of the receiving provider, etc.
  4. Referral leakage – Did you know? Referral leakage for large health system can average anywhere from 55-65%! Patient leakage or referral leakage occurs more in an out-of-network referral than in an in-network referral. Enterprise hospitals use different systems to track out-of-network and in-network referrals. There could be many factors like reputation of provider, lack of knowledge or insight and patient’s choice that lead to patient leakage.
  5. Patient dissatisfaction – Large enterprise hospitals should keep in track of the number of patients moving out of their network. An alarming 25 to 50% of referring physicians do not know whether their patients see the specialist! Patients become dissatisfied with the treatment when specialists or PCPs do not follow-up with them regularly.
  6. Referral Analytics –  As a large number of referrals flow in and out of the network, it is difficult to track the exact number. It is also tedious to track the number of referrals in various status, referral loop closures, percentage of referrals flowing in and out of network, referrals sent to different specialities, insurance provider, etc.

HealthViewX Patient Referral Management Features for Large Enterprise Hospitals

In order to solve the operational challenges faced by large enterprise hospital, the process has to be improvised. This can be done with web-based referral management which will optimize patient satisfaction and care.

HealthViewX has completely analyzed the workflow of large enterprise hospitals. We have implemented the following features for many of our enterprise hospital clients thus improving their operational efficiency

  • Multi-channel referral consolidation – The HealthViewX solution can capture fax, phone, email, online form referrals or any other referrals in a single interface. It makes it easy to monitor and manage all channels of referrals in a single queue.
  • Insurance pre-authorization process HealthViewX automates the insurance pre-authorization process. The provider need not coordinate with the insurance company for prior authorization. The HealthViewX solution will do it for them. This reduces the manual effort of the referral coordinators.
  • Patient coordination framework – After finding the receiving provider, the referral coordinator refers the patient. When the receiving provider receives the referral, the provider will get notified of the referral. Even the patient will be notified of the referral. The receiving provider can schedule appointments based on the patient’s comfort. This will cut down patient no-show rates.
  • Timeline View to track referralsWith the help of a referral status, the referring provider can get to know what stage the referral is. A timeline view shows a history of stages through which the referral has progressed. The chances of a referring provider missing out on referral updates are very less.
  • Referral closure and feedback – The referring provider can close the referral when it gets completed. The receiving provider and the patient can give a feedback on the referral process to the referring provider. Thus the referring provider can make it easy for the other the next time.
  • Referral Analytics – Helps in tracking the number of referrals and gives complete information about the referrals processed, missed, scheduled etc with the help of a Referral Data-centric Dashboard. It can also be customized for different locations based on the priority of the enterprise hospital.

HealthViewX Patient Referral Management solution smooths the referral process and solves most operational challenges for Large Enterprise Hospitals. Do you want to know more about HealthViewX HIPAA-compliant Patient Referral Management solution? Schedule a demo with us.

 

Reference

https://www.beckershospitalreview.com/lists/50-largest-hospitals-in-america.html

https://www.mass.gov/files/documents/2016/08/uy/2011-hcctd-full.pdf

https://www.beckershospitalreview.com/lists/52-great-health-systems-to-know-2018.html

 

How Can Large Enterprise Hospitals Achieve Seamless EMR Interoperability And Operational Efficiency?

What are Large Enterprise Hospitals?

Hospitals which have typically 500 or more beds are categorized as Large Enterprise Hospitals. They are capable of serving the broader needs of the community. Some larger hospitals offer a combination of acute and long-term care services while also providing research opportunities in some cases and accommodating a variety of specializations.

What is EMR Interoperability?

Large Enterprise Hospitals which are mergers or acquisitions tend to handle multiple EMRs. In such cases, facilities within the hospital will have to share patient information with each other. EMR Interoperability is the ability to effectively communicate health information electronically between different EMRs. There are essentially 2 fundamental components, ability to,

  • Securely transport the data
  • Interpret and use that data

Why is EMR Interoperability important for Large Enterprise Hospitals?

A patient may need to see a specialist in a different facility within the same hospital. In most cases, the EMRs will be different. EMR Interoperability will allow facilities to share the patient’s records in real time without compromising patient security or privacy. Providers, patients and insurers all benefit from increased access to the patient’s medical information.

Also, interoperability is an essential part of the Government’s Meaningful Use Stage 2 requirements. Meaningful Use Stage 2 will affect Medicare payouts for health care providers in stages, eventually leading to reduced payouts to all providers that take Medicare and do not follow the guidelines.

  • Providers’ benefit – Providers within the large enterprise hospital will have easy access to patient records because of EMR interoperability. While referring patients, the referring provider can avoid hassles faced in sharing patient information. It will make the referral workflow a lot easier.
  • Patient Benefits – EMR interoperability allows patients’ medical records to follow them throughout the healthcare system. Patients benefit from
    • Increased access to their medical records
    • Faster communication
    • Better quality of care

Speedy transfer of information has a real impact on the patient’s health, as many conditions require immediate intervention to save the patient’s life or minimize long-term effects on their health.

  • Cost Benefits – There is debate about how much EMR adoption and EHR interoperability will reduce the cost of healthcare. Some studies point to a reduction of upto $100billion/year. The primary cost savings result from reducing
    • Malpractice lawsuits
    • Hospital stays
    • Patient visits
    • Redundant or inapplicable testing
    • Unnecessary procedures

In the past, healthcare providers viewed patient data as their property, unable or unwilling to share data with other providers outside their organizations. Today these barriers are coming down with benefits of all parties involved.

Major challenges faced in achieving EMR interoperability

The following are the challenges faced by healthcare stakeholders that prevent them from achieving true interoperability for optimal care delivery and improved patient health outcomes.

    1. Lack of a strategic approach to identify patients – There is no way to consistently identify a patient across multiple EMR systems. Patients give their name, date of birth, and other identifying data. As different EMR systems store this information in different ways, the data is prone to errors. There is a push towards having a unique patient identifier. This code could be used to categorically identify the same individual no matter in what EMR system the data is. Unfortunately, there is a long way to go before getting this functionality in place.
    2. No standardized way to measure and analyze the impact of EMR interoperability – It is difficult to quantify the cost, error rate and other issues caused due to the lack of interoperability. When there is no room for measurement, then there is no way of improving the process. Once providers can measure issues across the end-to-end healthcare supply chain, they can analyze problem areas, make improvements, and monitor how those changes are improving the quality of care and patient outcomes.
    3. Vendors Blocking Information or Charging Fees for Interoperability – Some EHR and healthcare system vendors are holding patient data for ransom. They charge fees for transmitting data outside the system, increasing operational costs and making providers less likely to send data to others in the healthcare supply chain. The government is acting to encourage interoperability, but not all vendors have taken this on board.

HealthViewX Patient Referral Management Features for Large Enterprise Hospitals

  • Multi-channel referral consolidation – The HealthViewX solution can capture fax, phone, email, online form referrals or any other referrals in a single interface. It makes it easy to monitor and manage all channels of referrals in a single queue.
  • Intelligent Provider Match – The HealthViewX “Smart Search” feature makes it easy for the referring provider in finding the right provider. It has smart filters and search options that help in narrowing down the specialist based on the requirements. This saves a lot of time for the referring provider.
  • Insurance pre-authorization process HealthViewX automates the insurance pre-authorization process. The provider need not coordinate with the insurance company for prior authorization. The HealthViewX solution will do it for them. This reduces the manual effort of the referral coordinators.
  • Patient coordination framework – After finding the receiving provider, the referral coordinator refers the patient. When the receiving provider receives the referral, the provider will get notified of the referral. Even the patient will be notified of the referral. The receiving provider can schedule appointments based on the patient’s comfort. This will cut down patient no-show rates.
  • Timeline View to track referralsWith the help of a referral status, the referring provider can get to know what stage the referral is. A timeline view shows a history of stages through which the referral has progressed. The chances of a referring provider missing out on referral updates are very less.
  • Referral closure and feedback – The referring provider can close the referral when it gets completed. The receiving provider and the patient can give a feedback on the referral process to the referring provider. Thus the referring provider can make it easy for the other the next time.
  • Referral Analytics – Helps in tracking the number of referrals and gives complete information about the referrals processed, missed, scheduled etc with the help of a Referral Data-centric Dashboard.

Are you a large enterprise hospital looking to solve EMR interoperability challenges? HealthViewX Patient Referral Management Software and seamlessly integrate with your existing EMR. Schedule a demo with us to know how we solve EMR interoperability issues!

FAQs – Chronic Care Management

Care providers across the United States of America are monetizing Medicare chronic care management billing reimbursement codes to increase revenue from their practice. Read on to find answers to all the most commonly asked questions about patient eligibility, the scope of services, CPT codes and payment reimbursement for Medicare CCM.

Patient Eligibility

FAQ: Are all Medicare patients eligible for CCM reimbursement?

AnswerAccording to the Centers for Medicare & Medicaid Services (CMS), CCM is for “patients with two or more chronic conditions. A chronic condition is expected to last at least 12 months or the patient’s entire lifetime. The condition should be diagnosed to place the patient at significant risk of death, or functional decline.

FAQHow can a care provider decide which condition meets CMS’ definition for CCM eligibility?

AnswerCMS has not specified or listed the eligible chronic conditions that meet this definition. CMS does have a databank regarding chronic conditions (http://www.ccwdata.org) that care providers can use. However, this list is very narrow. In general practice, CMS requires a clear communication within the care plan that the chronic conditions being treated post a significant risk of death or functional decline.

FAQ Are there only certain diagnoses for which the CCM code can be reported?

Answer: There is not a defined list of diagnosis codes that meet the requirements of. What is required is that the chronic conditions place the patient at significant risk of death, acute exacerbation/decompensation, or functional decline and that management requires a care plan. The AAN recognizes patients with two or more of the following conditions may be appropriate for the use of chronic care management services*:

  • Neurocognitive disorders including Alzheimer’s disease, Dementia, and Parkinson’s disease
  • Stroke with late effects that place the patient at risk for falls, fractures, and aspiration pneumonia
  • Poorly controlled diabetes mellitus

FAQ: What about patients who are Medicare beneficiaries but also eligible for Medicaid?

Answer: CMS CPT codes can be used while billing for CCM treatment given to Medicare beneficiaries who are also eligible for Medicaid.

FAQ: How to kick-start the process of bringing a patient under CCM care?

AnswerAn initial appointment must be fixed for a comprehensive evaluation of the patient. This is known as a “Welcome to Medicare” visit and includes an initial preventive physical examination. A patient must have received an introduction to Medicare CCM billing in person to be able to bill separately for CCM services. Until the changes made in 2017, a consent form signed by the patient was mandatory during the patient’s initiation into the CCM program. As per the CMS requirement, the consent form is no longer mandatory.

FAQ – Can CCM services be reported if the patient/caregiver has not given consent?

Answer: No. One of the requirements for billing CCM services is “knowledge and recognition by the patient that the physician will perform care management services on the patient’s behalf.” In the event of an audit, documentation of patient consent in the patient record is crucial.

Scope of Services

FAQ: What are the scope of services for CCM reimbursement as defined by CMS?

AnswerCMS defines the scope of CCM services in the following way:

  1. Provide patients with access to care management services at any time of the day. This means patients should be able to contact the care provider during any emergency or urgent chronic care need 24-hours-a-day, 7-days-a-week. This may be through calls, SMS, email, internet applications or other means agreed upon by the patient and care provider.
  2. Established care continuity with a designated provider with whom the patient is able to schedule appointments, discuss care plan compliance, report vital stats and discuss any discomfort that arises.
  3. Creation of a patient-centered care plan document taking into consideration the physical, mental, functional and environmental factors of the patient. This includes an assessment of the support system and resources accessible to the patient.
  4. Care management for chronic conditions including assessment of patient’s medical, functional, and psychosocial needs. Regular follow-ups to ensure timely receipt of all recommended preventive care services, adherence to the suggested care plan and timely medication.
  5. Regular follow-up after a patient visits the emergency department, after discharges from the hospital or other healthcare facilities. Coordination with home/community based clinical service providers to support a patient’s care plan adherence.
  6. Use of certified electronic health record (EHR) and a patient consent form were mandatory until the changes in 2017 which made them optional.

Chronic Care Management CPT Billing Codes and Payment

FAQ: Which CMS Medicare billing codes can be used to bill CCM?

Answer: For the chronic codes that can be billed are below.

CPT Code Billing Amount(approx) per consultation Description
CPT99490 $42 Min 20min non-face to face time monitoring the care plan
CPT99480 $60 Min 60min non-face to face consultation time establishing or monitoring a care plan
CPT99489 $47 To be billed with CPT 99487 for every additional 30 min of non-face to face consultation


FAQ:  Are CCM services subject to Medicare’s co-paying system?

AnswerYes. After the deductible is met, the 20 percent coinsurance charged to the patient will be about $8 to $9 for a month’s work of CCM with CPT 99490.

FAQ: Can you bill CCM for patients in an assisted living facility?

AnswerAccording to CMS, CPT code 99490 can be billed only for CCM services provided to a patient who is currently not the inpatient of a hospital. The patient must not be residing in a facility that receives payment from Medicare for that beneficiary.

FAQ: Is billing for CCM services limited to primary care physicians?

AnswerPhysicians and Non-Physicians can claim reimbursement by billing for CCM CPT Codes. CCM code is most likely to be billed by primary care physicians. However, specialists, nurse practitioners, physician assistants, clinical nurse specialists and certified nurse midwives who meet the requirements may also bill for these services.

FAQ: Can the non-face-to-face time spent creating the care plan count toward the 20 minutes necessary to bill 99490?

AnswerYes, it can.

FAQ: What is the difference between chronic care management (99490) and complex chronic care management services (99487, 99489)?

Answer: Complex chronic care management services include the same criteria as the chronic care management service, plus an additional requirement of the establishment or substantial revision of a comprehensive care plan, medical decision-making of moderate to high complexity, and at least 60 minutes of clinical staff time.

Care Plan

FAQ: What does the care plan have to include as required by CMS?

AnswerThe plan of care should include details of the following elements:

  • Problem list detailing the chronic conditions the patient suffers from
  • Expected outcome and the likely course of the disease
  • Measurable treatment goals
  • Symptom management
  • Planned interventions through regular follow-ups and vital data collection from patient
  • Medication management depending on any concerns/reactions/improvement reported by the patient
  • Care coordination plan between care provider and patient’s caregiver such as family/nurse/community housing etc
  • Requirements for periodic review and revision of the care plan as required.

FAQ: Do I have to provide the patient with a copy of the care plan?

AnswerYes. CMS requires the care provider to share the care plan with the patient in a written or electronic format.

FAQS – Patient Referral Management

There has been a buzz around Patient Referral Management recently. Practices have considerable concern about how Patient Referral Management works and the related organizational components. This blog documents the Frequently Asked Questions by general practices in the U.S. and answers for the same.

FAQ – What is Patient Referral Management?

Answer – Patient Referral Management is the process of monitoring, directing and controlling patient referrals. It varies according to the nature of a practice and encompasses a range of different functions. Referral management centers may send referrals to specialty care or receive referrals from primary care. In addition to analyzing patient referral data, it also includes

  • Patient appointment scheduling
  • Communicating referral updates to the physicians
  • Referral process feedback
  • Referral loop closure

FAQ – How does a Patient Referral Management work?

Answer – It can vary depending on the nature of a practice. When patients need advanced treatment or additional diagnosis that cannot be given within the practice, they are referred to a specialist/imaging centre. The PCP identifies the need for a referral and places a request with the referral coordination team. The referral coordinator does the insurance pre-authorization and finds the right specialist for the referral. Then the referral coordinator sends the referral. Now the specialist validates the referral information and coordinates with the referring physician for missing information. The specialist then schedules appointments and takes care of the patient. The specialist must give timely updates to the referring physician. After the referral is over, the referring physician closes the referral loop.

FAQ – What are the medico-legal risks?

Answer – Some of the possible risks involved in a Patient Referral Management process include:

  • The referral letter getting lost in the process
  • Delays in the patient being seen by a specialist
  • The patient being seen by an inappropriate specialist (at the behest of the RMC)
  • The referral being returned to the practice when it is, in fact, needed
  • Whether referring through Patient Referral Management may breach patient confidentiality.

FAQ – Is patient confidentiality at risk?

Answer – In line with General Medical Council advice, practices should tell patients if their referral letter will be sent via a referral management centre.

Paragraphs 25-27 of the GMC’s Confidentiality (2009) state

  1. Most patients understand and accept that information must be shared within the healthcare team in order to provide their care. You should make sure information is readily available to patients explaining that, unless they object, personal information about them will be shared within the healthcare team, including administrative and other staff who support the provision of their care.
  2. This information can be provided in leaflets, posters, on websites, and face to face and should be tailored to patients’ identified needs as far as practicable. Posters might be of little assistance to patients with sight impairment or who do not read English, for example. In reviewing the information provided to patients, you should consider whether patients would be surprised to learn about how their information is being used and disclosed.
  3. You must respect the wishes of any patient who objects to particular information being shared within the healthcare team or with others
    providing care, unless disclosure would be justified in the public interest. If a patient objects to a disclosure that you consider essential to the
    provision of safe care, you should explain that you cannot refer them or otherwise arrange for their treatment without also disclosing that
    information.

If the patient objects to the involvement of the RMC, the practice should respect their wishes and make the referral direct to the consultant, if that is possible. The referring practice should, however, be able to rely on a duty of confidentiality at the RMC which is comparable to their own.

FAQ – Why go for a Patient Referral Management software?

Answer – Patient Referral Management process is currently too manual and requires a lot of time and effort. A Patient Referral Management software helps in automating the process. It eases the process of,

  • Insurance pre-authorization
  • Finding the right receiving provider
  • Patient coordination and communication
  • Referral updates to the referring physicians

FAQ – Whom does a Patient Referral Management Software benefit?

Answer – A Patient Referral Management Software helps in automating the manual process of managing patient referrals. It benefits all the stakeholders involved in a referral process. They are,

  • Referring physician – A referring physician identifies the need for a referral and initiates the same. A Patient Referral Management Software reduces the processing time of the referrals. It saves a lot of time and effort for referring physicians.
  • Referral coordinators – Referral coordinators do the insurance pre-authorization and also they also find the right specialist. They are made to handle many software at the same time. A single Patient Referral Management Software can help in easing the process for them.
  • Receiving providers – The specialists have tough time managing referrals from various channels and also fail to communicate effectively with the patient and the referring physicians. A Patient Referral Management Software can automate the process by channelizing the referrals into a single queue and also help in effective communication.
  • Patients – A software can help patients by reducing their efforts in communicating between the referring and receiving providers. It also enhances patient experience by reducing care fragmentation.

FAQ – Which organizations can use a Patient Referral Management software?

Answer – A Patient Referral Management software can help organization who send or receive referrals. Community Clinics and Federally Qualified Health Centres (FQHCs) send out referrals. They can use a Patient Referral Management software to track and manage their referrals. Specialist clinics and Imaging centres who receive referrals can use this software to manage their referrals and patient appointments efficiently. Large Enterprise Hospitals send and receive referrals. They can use a Patient Referral Management Software to track how many referrals are flowing in and out of their network.

FAQ – Does a Patient Referral Management software help both inbound and outbound referrals?

Answer – Inbound is when referrals are received in a practice and outbound is when referral are sent to a practice. As mentioned earlier, a Patient Referral Management can help in both sending and receiving referrals. Both inbound and outbound heavy practices can benefit from a Patient Referral Management software.

FAQ – How to implement a Patient Referral Management software?

Answer – A Referral Management software must identify the pain points in the current workflow and try to fit in by solving the challenges. For instance, before our HealthViewX Patient Management software is implemented, we do a few steps,

  • Understand the practice’s challenges and what they predominantly need to solve
  • Study the practice’s workflow completely
  • Propose a solution wherein it can fit in their existing workflow
  • Implement the solution without disrupting their existing system

Ideally, any Patient Referral Management software should follow the above for easy implementation.

FQHC Statistics – Growth, Region, Performance and Revenue – Federally Qualified Health Centers across the USA

What are Federally Qualified Health Centers (FQHCs)?

Federally Qualified Health Centers (FQHCs) in the United States are non-profit entities that are composed of clinical care providers, who operate at comprehensive federal standards. FQHCs were originally intended to provide the medically underserved population with quality care to minimize patient load in hospital emergency rooms.

According to Medicare and Medicaid statutes, FQHCs receive federal funding under Section 330 of the Public Health Service (PHS) Act to provide comprehensive primary care services to uninsured and underinsured populations thus ensuring that comprehensive care is available to all, regardless of income or insurance status. Medicare pays FQHCs based on the FQHC Prospective Payment System (PPS) for medically necessary primary health services and qualified preventive health services given by an FQHC practitioner.

To receive federal funding, FQHCs must meet the following requirements:

  • Be located in a federally designated medically underserved area (MUA) or serve medically underserved populations (MUP)
  • Provide comprehensive primary care
  • Adjust charges for health services on a sliding fee schedule according to patient income
  • Be governed by a community board of which a majority of members are patients at the FQHC

The Growth of FQHCs

In the early 1960s, there were only 8 health centers in the U.S. Ever since then, the numbers have increased exponentially. By 2001, there were 748 health centers at 4,128 service sites around the nation, serving approximately 10 million individuals.

Federal funding for health centers has increased from $750 million in 1996 to $2.2 billion in 2010. Federal support has increased tremendously over the last 10 years. In 2011, there were 1,128 health centers providing care to more than 8,000 rural and urban delivery sites in the U.S. and territories. Today, there are 1,400 organizations with 11,200 facilities serving about 25 million individuals every year.

The above chart shows the growth of health centers from its inception in 1980 till 2020. The chart also shows the exponential increase in the number of patients served over the years.

FQHCs in various regions across the U.S

State State Code Number of FQHCs
California CA 178
Texas TX 73
New York NY 70
Florida FL 48
Ohio OH 47
Illinois IL 45
Pennsylvania PA 44
North Carolina NC 40
Michigan MI 39
Massachusetts MA 39
Georgia GA 35
Louisiana LA 36
Oregon OR 33
West Virginia WV 31
Tennessee TN 30
Alaska AK 28
Missouri MO 28
Washington WA 27
Virginia VA 26
Indiana IN 25
Kentucky KY 23
New Jersey NJ 23
South Carolina SC 23
Arizona AZ 21
Mississippi MS 21
Colorado CO 21
Oklahoma OK 20
Maine ME 20
Kansas KA 18
Maryland MD 17
Montana MT 17
New Mexico NM 17
Wisconsin WI 18
Connecticut CT 17
Minnesota MN 16
Alabama AL 15
Hawaii HI 14
Iowa IA 14
Idaho ID 14
Puerto Rico PR 14
Utah UT 13
Arkansas AR 12
New Hampshire NH 11
Vermont VT 11
District of Columbia WDC 8
Rhode Island RI 8
Nebraska NE 7
Nevada NV 7
Wyoming WY 6
South Dakota SD 5
North Dakota ND 4
Delaware DE 3
Virgin Islands VI 3
Guam GU 2
Northern Mariana Islands MP 2

Performance of FQHCs

Figure 2 - Health Centers Perform Better on Ambulatory Care Quality Measures than Private Practice Physicians

Figure 2 – Health Centers Perform Better on Ambulatory Care Quality Measures than Private Practice Physicians

The above chart shows how health centers have outperformed private practice physicians in every aspect of service.

Figure 3 - Health Centers Provide More Preventive Services than Other Primary Care Providers

Figure 3 – Health Centers Provide More Preventive Services than Other Primary Care Providers

The above chart shows a comparison between health centers and other providers based on the number of patient visits for various ailments.

Figure 4 - Health Center Patients Are More Satisfied with the Overall Care Received Compared with Low Income Patients Nationally

Figure 4 – Health Center Patients Are More Satisfied with the Overall Care Received Compared with Low Income Patients Nationally

The above chart shows the level of satisfaction of low-income patients. Health center patients have a huge level of satisfaction as compared to other low-income patients nationally.

Financing and Reimbursements for FQHCs

FQHCs are required by law to provide services to all people, regardless of ability to pay. The uninsured are charged for services on a board-approved sliding-fee scale, which is based on a patient’s family income and size.

FQHCs are financed through various methods. These include a mix of Medicaid and Medicare reimbursements (with different payment methodologies), direct patient revenue, other third-party payers (private insurers), state funding, local funding, philanthropic organizations, and grant funding from the Bureau of Primary Health Care (BPHC) of HRSA of the U.S. Department of Health and Human Services (HHS).

The above chart shows the revenue distribution of FQHCs based on payer source (2018).

FQHC Revenue across all regions in the U.S (approx. 2018)

Source:
George Washington University analysis of the Health Resources and Services Administration’s Uniform Data System. Special Data Request, September 2019.

Location Medicaid Medicare Private Insurance Self-Pay Federal Section 330 Grants Other Grants and Contracts Other Total
United States $12,958,743,457 $2,260,247,981 $3,048,512,406 $1,248,741,884 $4,829,287,467 $3,336,624,219 $1,007,447,180 $28,689,604,594
Alabama $52,785,795 $17,803,287 $17,114,860 $12,744,350 $83,625,546 $13,471,556 $4,344,085 $201,889,479
Alaska $102,348,854 $18,671,815 $37,698,230 $6,477,465 $67,692,068 $119,544,705 $2,756,393 $355,189,530
Arizona $337,972,854 $47,634,000 $71,949,881 $23,395,361 $83,428,217 $41,485,739 $5,472,766 $611,338,818
Arkansas $62,148,511 $24,046,228 $30,622,521 $12,429,111 $54,555,352 $9,120,521 $1,735,385 $194,657,629
California $3,704,343,504 $411,514,109 $291,192,054 $148,976,225 $658,760,061 $615,047,232 $334,581,140 $6,164,414,325
Colorado $319,775,816 $39,134,784 $48,657,089 $30,779,398 $106,101,957 $95,942,011 $20,709,084 $661,100,139
Connecticut $228,434,332 $32,127,164 $26,544,878 $11,568,619 $59,696,129 $50,791,682 $10,598,421 $419,761,225
Delaware $11,773,644 $1,479,685 $2,463,464 $4,386,233 $13,557,989 $5,219,063 $470,309 $39,350,387
District of Columbia $160,105,430 $22,175,379 $32,105,709 $5,512,030 $27,476,019 $31,943,055 $7,236,844 $286,554,466
Florida $391,497,340 $60,674,510 $209,954,679 $81,714,253 $236,911,216 $193,834,424 $17,832,728 $1,192,419,150
Georgia $66,177,853 $48,142,417 $57,295,748 $30,758,262 $117,787,006 $28,848,026 $9,877,675 $358,886,987
Hawaii $107,408,992 $15,806,563 $17,253,126 $5,783,071 $31,398,131 $32,520,603 $3,907,118 $214,077,604
Idaho $45,572,373 $21,289,644 $50,122,229 $22,535,206 $45,993,298 $25,577,164 $3,267,335 $214,357,249
Illinois $455,197,448 $56,238,990 $131,100,822 $64,116,380 $201,027,383 $137,469,419 $29,398,121 $1,074,548,563
Indiana $200,004,374 $20,647,447 $30,284,051 $18,433,251 $75,547,860 $28,756,217 $30,759,622 $404,432,822
Iowa $83,853,103 $13,542,737 $23,553,367 $12,655,645 $38,528,294 $19,319,034 $1,624,245 $193,076,425
Kansas $37,808,462 $19,789,301 $26,840,099 $15,221,728 $44,761,541 $16,668,896 $4,665,564 $165,755,591
Kentucky $176,573,940 $46,631,367 $68,598,016 $24,819,874 $80,881,354 $6,773,516 $6,597,845 $410,875,912
Louisiana $146,815,697 $31,043,111 $59,995,751 $11,587,230 $100,474,957 $30,961,276 $4,441,509 $385,319,531
Maine $41,882,541 $35,423,228 $47,436,524 $12,099,407 $43,787,648 $11,360,335 $6,280,495 $198,270,178
Maryland $150,688,381 $29,260,626 $73,964,146 $13,146,680 $57,449,364 $35,657,860 $21,090,583 $381,257,640
Massachusetts $362,280,706 $103,012,238 $165,134,454 $27,248,100 $128,238,080 $258,007,270 $160,820,426 $1,204,741,274
Michigan $314,285,715 $68,214,766 $79,638,020 $28,291,497 $127,807,919 $44,375,118 $9,855,849 $672,468,884
Minnesota $75,452,268 $12,577,519 $16,837,190 $11,935,453 $42,977,632 $29,987,097 $4,128,981 $193,896,140
Mississippi $32,037,428 $18,436,338 $22,813,575 $21,440,111 $74,626,865 $14,886,816 $1,657,237 $185,898,370
Missouri $255,311,813 $26,546,831 $59,184,521 $28,003,100 $110,804,809 $33,834,797 $10,235,337 $523,921,208
Montana $34,073,242 $12,203,723 $17,685,163 $7,521,912 $42,126,575 $10,185,208 $6,307,871 $130,103,694
Nebraska $19,899,828 $1,982,820 $13,342,672 $7,991,555 $22,106,057 $22,906,355 $1,933,464 $90,162,751
Nevada $33,773,688 $11,166,606 $12,531,690 $3,172,460 $21,069,529 $15,948,721 $706,509 $98,369,203
New Hampshire $21,695,854 $17,132,960 $22,653,425 $5,099,829 $24,039,213 $11,899,812 $2,725,189 $105,246,282
New Jersey $158,938,887 $11,758,143 $14,145,131 $21,606,309 $81,666,571 $69,281,662 $5,982,249 $363,378,952
New Mexico $132,429,129 $26,364,684 $24,132,532 $15,923,683 $76,523,082 $57,190,428 $4,530,396 $337,093,934
New York $1,461,356,192 $201,623,297 $250,926,163 $50,171,017 $269,626,284 $385,124,022 $91,523,863 $2,710,350,838
North Carolina $90,190,949 $59,012,065 $65,516,943 $50,837,624 $133,899,942 $40,248,341 $26,574,283 $466,280,147
North Dakota $11,640,795 $3,863,326 $9,419,592 $4,474,860 $10,746,019 $908,251 $1,001,661 $42,054,504
Ohio $261,827,729 $51,042,970 $58,596,828 $25,007,037 $146,210,064 $41,839,517 $21,051,011 $605,575,156
Oklahoma $58,934,312 $20,089,581 $28,480,968 $19,992,107 $58,679,531 $10,582,038 $2,883,612 $199,642,149
Oregon $394,118,738 $51,503,384 $31,974,615 $15,310,703 $91,700,505 $91,028,195 $7,602,558 $683,238,698
Pennsylvania $315,531,242 $68,519,997 $104,374,387 $17,072,987 $128,243,325 $37,490,171 $10,326,309 $681,558,418
Rhode Island $109,670,334 $15,761,096 $19,797,174 $5,830,348 $28,040,434 $14,890,907 $4,960,361 $198,950,654
South Carolina $95,328,346 $89,583,350 $103,316,045 $25,145,381 $89,314,251 $31,444,029 $18,322,528 $452,453,930
South Dakota $11,514,028 $4,903,220 $10,207,221 $6,525,886 $17,900,812 $3,435,235 $1,231,547 $55,717,949
Tennessee $80,779,671 $26,920,974 $41,375,639 $15,091,806 $87,348,642 $31,856,403 $3,747,729 $287,120,864
Texas $405,350,935 $68,050,313 $170,985,325 $92,159,958 $258,162,160 $309,998,557 $26,687,781 $1,331,395,029
Utah $29,700,875 $11,520,256 $16,681,038 $13,794,751 $39,878,950 $24,880,704 $3,574,692 $140,031,266
Vermont $47,210,527 $31,973,872 $34,695,192 $23,137,643 $23,463,366 $7,348,657 $8,511,984 $176,341,241
Virginia $54,549,880 $39,744,588 $42,438,653 $26,005,991 $85,805,735 $20,677,091 $4,357,021 $273,578,959
Washington $769,937,162 $89,428,910 $129,151,433 $58,320,292 $139,027,744 $94,896,347 $14,596,022 $1,295,357,910
West Virginia $116,781,516 $57,847,408 $83,808,357 $28,402,025 $68,591,429 $16,910,711 $12,143,151 $384,484,597
Wisconsin $149,327,704 $8,202,250 $27,257,452 $10,451,845 $45,790,614 $27,262,928 $7,630,433 $275,923,226
Wyoming $6,918,264 $4,226,082 $5,490,411 $3,411,365 $7,478,734 $1,763,502 $477,559 $29,765,917
American Samoa $786,753 $0 $0 $0 $3,082,370 $0 $0 $3,869,123
Federated States of Micronesia $0 $0 $24,112 $84,319 $3,186,592 $0 $0 $3,295,023
Guam $2,451,828 $53,941 $17,002 $132,489 $2,173,874 $2,330,520 $137,227 $7,296,881
Marshall Islands $0 $0 $0 $31,865 $1,061,772 $1,086,917 $0 $2,180,554
Northern Mariana Islands $98,987 $641 $7,161 $11,185 $677,559 $0 $122,655 $918,188
Palau $0 $0 $259,006 $1,461,345 $940,810 $50,000 $0 $2,711,161
Puerto Rico $153,566,707 $33,237,486 $10,276,689 $7,922,019 $103,150,074 $16,880,374 $3,452,418 $328,485,767
U.S. Virgin Islands $7,822,181 $665,954 $589,383 $581,248 $3,678,153 $4,875,184 $0 $18,212,103

Definitions:
*Medicaid*: also includes the Children’s Health Insurance Program (CHIP), family planning programs, and state-funded coverage programs.

*Private Insurance*: includes employer-sponsored insurance and insurance purchased in the individual market (including the Marketplaces).

*Federal Section 330 Grants*: grants provided by the Health Services Resources Administration, Bureau of Primary Health Care under Section 330 of the Public Health Service Act.

*Other Grants and Contracts*: includes federal grants other than Section 330 grants, grants from state and local governments and private foundations, payments from state and local indigent care programs, and contracts.

*Other*: includes non-patient related revenue, such as fundraising, interest income, rent from tentants, etc.

Future of FQHCs

FQHCs have had significant growth in the past decades. The statistical data indicates that FQHCs have the potential to serve more patients by improving the quality of care. To provide quality care and improve patient experience, FQHCs must invest in the right technology like HealthViewX Care Orchestration Platform which provides the best solutions for the major challenges faced by the health centers.

Reference:

  1. https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNProducts/Downloads/fqhcfactsheet.pdf
  2. Kaiser Commission on Medicaid and the Uninsured (data from the National Association of Community Health Centers and the Uniform Data System (UDS) of the Health Resources and Services Administration (HRSA).
  3. Goldman, LE et al. Federally Qualified Health Centers and Private Practice Performance on Ambulatory Care Measures. American Journal of Preventive Medicine. 2012. 43(2):142-149. *Fontil et al. Management of Hypertension in Primary Care Safety-Net Clinics in the United States: A Comparison of Community Health Centers and Private Physicians’ Offices. Health Services Research. April 2017. 52:2.
  4. 2015 Uniform Data System. Bureau of Primary Health Care, HRSA, DHHS. National Center for Health Statistics. NCHS Data Brief. No. 220. November 2015. Hypertension Prevalence and Control Among Adults: United States, 2011 – 2014. National Committee for Quality Assurance. Comprehensive Diabetes Care, The State of Healthcare Quality (2016).
  5. Shi L, Tsai J, Higgins PC, Lebrun La. (2009). Racial/ethnic and socioeconomic disparities in access to care and quality of care for US health center patients compared with non-health center patients. J Ambul Care Manage 32(4): 342 – 50. Shi L, Leburn L, Tsai J and Zhu J. (2010). Characteristics of Ambulatory Care Patients and Services: A Comparison of Community Health Centers and Physicians’ Offices J Health Care for Poor and Underserved 21 (4): 1169-83. Hing E, Hooker RS, Ashman JJ. (2010). Primary Health Care in Community Health Centers and Comparison with Office-Based Practice. J Community Health. 2011 Jun; 36(3): 406 – 13.
  6. Shi L, Lebrun-Harris LA, Daly CA, et al. Reducing Disparities in Access to Primary Care and Patient Satisfaction with Care: The Role of Health Centers. Journal of Health Care for the Poor and Underserved. 2013; 24(1):56-66.
  7. George Washington University analysis of the Health Resources and Services Administration’s Uniform Data System. Special Data Request, March 2018.
  8. Community Health Center Revenues by Payer Source.