HCN News & Notes

State Announces Medicaid Investments in Federally Qualified Community Health Centers

BOSTON — The Baker-Polito administration announced it is making significant investments in the future of federally qualified community health centers (FQHCs) through substantial rate increases in Medicaid (MassHealth) payments. These investments increase reimbursements for primary care, behavioral health, and dental services, in line with the administration’s commitment to invest in preventive care and behavioral-health treatment.

Nearly 50% of patients served at FQHCs are MassHealth members, and FQHCs provide more than 20% of MassHealth members’ primary care. These MassHealth rate increases will result in more than $100 million of new funding for 33 FQHCs in 2022 and up to $600 million in new funding over the next five years.

These rate investments represent an increase of approximately 50% overall for FQHCs, which will also be reimbursed for previously non-billable services to support behavioral-health integration, such as collateral time consulting among primary-care and behavioral-health teams within the FQHC to strengthen care coordination for their patients. On average, FQHCs will experience a $3.6 million increase in payments from MassHealth on an annual basis. Going forward, payment for these services will grow year over year to account for inflation and service changes.

Locally, eligible FQHCs include Caring Health Center, Community Health Center of Franklin County, Community Health Programs, Hilltown Community Health Centers Inc., Holyoke Health Center, and Springfield Health Services for the Homeless.

Additionally, the Executive Office of Health and Human Services (EOHHS), through the Department of Public Health, is announcing $3.1 million in new funding to support community health centers’ ongoing efforts to increase vaccine acceptance and access among residents who have been disproportionately impacted by COVID-19. These funds will be used to expand the existing Community Health Worker Ambassador Program to increase vaccine acceptance in historically marginalized communities. This latest award supports vaccine efforts, including in the 20 communities hardest-hit by the pandemic, through the Commonwealth’s Vaccine Equity Initiative. With this funding, community health centers have received $13.2 million for vaccine-specific initiatives from the Commonwealth to date.

“Community Health Centers are essential partners of our MassHealth program, providing a robust range of community-based healthcare and serving as a as a trusted source of medical care for vulnerable communities across the Commonwealth,” said Marylou Sudders, secretary of Health and Human Services. “During the COVID-19 pandemic, CHCs have played a vital role in ensuring access to healthcare services — including COVID testing, treatment, and vaccination — in some our most disproportionately impacted communities. These investments will ensure stability for FQHCs now and for the future, as well as integration of behavioral health and primary care.”

Michael Curry, president and CEO of the Massachusetts League of Community Health Centers, added that “the magnitude of these investments is a game changer for health centers and the patients they serve. The implementation of a new payment methodology and resulting historic rate increases reflect a powerful commitment to primary care that will help us meet the depths of demand for medical, behavioral-health, and dental services in our high-need communities, and truly begin to move the needle on health equity across Massachusetts.”