Cms proposes a medicare prospective payment system for federally qualified health centers

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Traditionally, Federally Qualified Health Centers FQHCs and Rural Health Clinics RHCs could only bill Medicare for telehealth services if the clinic was serving as an originating site, which means where a Medicare beneficiary was located for a telehealth visit with a provider in a different location. FQHC providers could not serve as distant sites, or the location of the provider furnishing telehealth services to Medicare beneficiaries.

Many strategies have been developed related to the provision of behavioral health services and dental health services. The most common strategies include:. This report shows that the operating margins for both rural and urban FQHCs declined between and However, rural FQHCs consistently had higher margins than urban facilities during this period.

In , the margins for rural FQHCs ranged from MACs also support and work with FQHCs by enrolling providers in the Medicare program, educating providers on Medicare billing requirements, handling provider reimbursement and auditing institutional provider cost reports, managing the initial claims appeals process, and establishing local coverage determinations LCDs.

In general, no. However, a city- or county-owned public hospital or a c 3 Critical Access Hospital CAH may be able to operate an FQHC if the CAH's governing body or board of directors is developed to meet the Health Center Program requirements, the organization meets all other eligibility requirements, and the organization successfully applies for the program.

Other healthcare organizations, such as Critical Access Hospitals and Rural Health Clinics, are not eligible to operate a health center look-alike.

For example, RHCs must meet prescribed staffing requirements, are not required to charge based on a sliding fee scale unless it is a National Health Service Corps-approved site, and receive an interim all-inclusive rate AIR payment per visit throughout the clinic's fiscal year. In addition, HRSA administers the Health Center Facility Loan Guarantee Program LGP , which facilitates health centers' access to capital funding and reduces financing costs for the construction, expansion, alteration, renovation, and modernization of health center medical facilities.

Capital Link also receives funding from HRSA to provide health centers with tools, resources, and services related to capital funding and needs. Other funders may support capital projects and can be found listed on the Funding and Opportunities section of this guide and the Capital Funding for Rural Healthcare guide.

For additional information about health centers and related programs contact one or more of the following:. Menu Search. How to Become a Health Center explains that health centers: Provide a set of comprehensive, high-quality primary care and preventive services regardless of patients' ability to pay. Employ interdisciplinary teams and patient-centric approaches.

Deliver care coordination and other enabling services that facilitate access to care. Collaborate with other providers and programs to improve access to care and community resources. Are community-based and patient-directed. Most awards provide support for the provision of comprehensive primary care services to underserved communities or service areas and specific underserved populations as mandated in the Section authorization, such as migratory and seasonal agricultural workers, persons experiencing or at risk for homelessness, and residents of public housing.

FQHCs include Health Center Program award recipients and look-alikes as well as certain outpatient clinics associated with tribal organizations. Note that different rules may apply to outpatient clinics associated with tribal organizations who enroll in Medicare or Medicaid as FQHCs.

What are the benefits of being a Health Center Program award recipient or look-alike? What is the Health Center Program? How does a health center become certified as an FQHC? Where can I find statistics on health centers? How do I apply for a Health Center Program grant? Are Health Center Program awards granted on a competitive basis? Which special populations can be served by healthcare organizations applying for funding through Section of the Public Health Service Act?

What are school-based health centers and how would I set one up? Can a for-profit clinic be a health center? Is a board of directors required? Are there location requirements for health centers? Are there specific staffing requirements for health centers? What types of services do health centers provide? Are there minimum hours that a health center must be open? Is a sliding fee scale required?

Must health centers accept all patients, regardless of their ability to pay? Are there special programs to assist health centers in attracting and retaining healthcare providers to their organization? What strategies have rural health centers used to provide behavioral health and dental health services to meet the needs of their patient population? What do we know about the financial and operational performance of health centers?

Are there funding opportunities available for the expansion, renovation, purchase of equipment, or new construction of health centers? Who can I contact for additional information about health centers? What are the benefits of FQHC status? Eligibility to purchase prescription and non-prescription medications for outpatients at reduced cost through the B Drug Pricing Program.

Access to the Vaccines for Children Program. Health centers must still review and sign the NHSC site agreement. Learn more about requirements for health centers to become approved NHSC sites.

HRSA-supported training and technical assistance. Medical malpractice coverage may be granted for the health center organization, their employees, and eligible contractors under the Federal Tort Claims Act FTCA. To receive coverage, award recipients must submit an application to the HRSA Bureau of Primary Health Care and meet the requirements to attain deemed status. Loan guarantees for capital improvements. Service Area Competition SAC funding opportunities support continued access to comprehensive, culturally competent, high-quality primary health care services for communities and populations currently served by the Health Center Program.

Healthcare organizations meeting the Section program requirements are eligible for SAC funding. Service Area Competition Technical Assistance provides specific information about the program, including the service area announcement table, application resources, and frequently asked questions.

Patient Characteristics Snapshot — Provides a national summary of health center patient poverty level, insurance status, and race and ethnicity. Additional UDS data resources include: UDS Trends Webinar Presentation and Recording — Highlights UDS data trends in health center patient demographics, staffing, and clinical quality measures, and offers insights on how health centers delivered quality primary care services to their communities during the COVID pandemic.

Uniform Data System UDS Resources — Features technical assistance resources for health centers that support complete, accurate, and timely submission of an annual UDS reports, including the annual UDS manuals and Program Assistance Letters , webinars, trainings, fact sheets, validations, and crosswalks. Uniform Data System UDS Mapper : A geospatial mapping tool that can help evaluate the geographic reach, penetration, and growth of the Health Center Program and its relationship to other federally linked health resources.

The tool provides additional details on health center service areas, data identifying areas of high need and services available related to the opioid epidemic, and more. The UDS Mapper tool is free but requires registration to use. Data Explorer includes additional details on location, rural status, and award recipient status. The National Association of Community Health Centers provides these data sources: Community Health Center State Level Data and Maps offers state-level data on health center patients, staff, patient visits, and the number of award recipients and delivery sites.

Community Health Center Chartbook, includes statistics on telehealth services, financial health, workforce status, and many of the data points mentioned above in chart format. See the MUA Find tool.

Assess the need for health services in the service area. Establish and maintain community support by engaging community members, healthcare providers, and other stakeholders in the local planning and implementation process. Find a suitable location for your health center. Establish and engage a patient-majority governing board that meets federal requirements as outlined in the Health Center Program Compliance Manual. Identify staffing needs and policies for employment practices, including the recruitment and retention of provider staff.

Develop a business plan identifying the population groups to be served, management and organizational structure, projected demand for services, and expected expenses and revenue. Develop a Sliding Fee Discount Program and other mechanisms to ensure no one is turned away for the inability to pay. General tips provided include: Involve the community in the planning process.

This could include establishment of a School Health Advisory Committee, which often includes school leadership, the school nurse, students, parents, and others. Conduct a needs assessment.

Who is your target audience and what are their primary unmet needs? Determine the SBHC's organization. What services will you provide? With what staff? How will the SBHC interact with the school? School-Based Health Centers: A Funder's View of Effective Grant Making recommends at minimum a primary care provider and front-office staff member for staffing, and to provide space for a small waiting room, two exam rooms, a bathroom, and an office, as well as internal and external doors to allow for flexible hours.

Plan funding sources. Foundation grants may provide funding for start-up costs. Sustainability tools from the School-Based Health Alliance. Search for: Menu. The final payment update reflects the following dynamics: Expiration of a statutory one-year 3 percent increase in payments, A statutory 0 percent payment update for CY , and A budget neutrality adjustment across all billing codes resulting from modifications to PFS weights which increased the relative value of primary care billing codes.

This package of changes are intended to increase participation in MSSP and in particular participation in rural and underserved areas.

Behavioral health : The final rule expands the types of behavioral health providers eligible for reimbursement under Medicare Part B. Psychologists and social workers that are part of a primary care team will also be eligible for payment to help manage behavioral health needs.

Additionally, CMS confirmed that Opioid Treatment Programs may bill Medicare for services performed by mobile units without obtaining a separate registration and increasing payment rates to Opioid Treatment Programs.

The regulation also finalized changes to the long awaited Medicare Ground Ambulance Data Collection Instrument, including clarifying to process for requesting exemption from reporting cost data through this collection device. Payment rates and Inflation : CMS increased hospital outpatient and ambulatory surgical center payments by 3. This reflects a 4. The hospital industry has expressed deep concern to Congress and CMS that although the 4.

In beneficiaries would need to receive an in-person service within the 6 months prior to the first time hospital clinical staff provide the remote behavioral health services. CMS also is requiring an in-person service without the use of communications technology within 12 months of each behavioral health service furnished remotely.

Algorithm driven services : CMS finalized policy to pay separately rather than bundle payment for Algorithm-driven services that assist practitioners in making clinical assessments. This includes clinical decision support software, clinical risk modeling, and computer aided detection CAD. The new REH program will be effective January 1, Federal policymakers believe the REH provider type could provide a more sustainable option for rural hospitals facing closure and to support access to care in rural and underserved communities.

Hospitals and health systems and the rural communities they serve will want to analyze the final requirements for health and safety standards, staffing, and physical environment and emergency preparedness and other expectations and balance these with community perspectives to determine the feasibility of this pathway.

Other notable final rule Home Health policies include: CMS finalized a permanent cap on wage index decreases to promote predictability in payments and smooth year-to-year changes. This was also implemented within the Inpatient Prospective Payment System.

CMS will begin collecting data on the use of telecommunications technology on home health claims voluntarily starting on January 1, , and on a mandatory basis beginning on July 1, Further details are expected to be issued in January Additional impactful policies for providers and stakeholders include: CMS did not approve any of the three new technologies which applied for pass-through payment. While CMS has created a payment mechanism to promote innovation, it has proved challenging to actually access this payment mechanism.

That may slow investment in the space if CMS continues to set such a high bar.

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Additionally, CMS proposes a 1. CMS has proposed to eliminate these exceptions. CMS explained that this approach is not only consistent with the PPS payment methodology, but would further simplify billing and payment procedures. However, CMS specifically invited comment on the proposed measure, because it may be unaware of the impact of these changes, particularly with regard to the provision of mental health services.

Because many FQHCs provide more services than just those covered under the all-inclusive rate, the below table summarizes the proposed changes for FQHC reimbursement:. For FQHC visits that include preventive and non-preventive services, the proportional amount of coinsurance that should be waived for the preventive services is calculated based on FQHC reported charges.

For FQHC visits that include preventive and non-preventive services, the proportional amount of coinsurance that should be waived for the preventive services is calculated based on the reimbursement rate under the Medicare physician fee schedule.

Billed separately; paid at percent of reasonable costs through the FQHCs cost report. For example, claims processing systems will require changes to accommodate the new payment methodology.

As noted previously, CMS is reviewing the types of cost data that may facilitate the potential development of a FQHC market basket that could be used in base payment updates after the second year of the PPS. Comments to the proposed rule must be received no later than 5 p. Business and Corporate.

Data Protection, Privacy and Cybersecurity. Government Enforcement and Investigations. Government Relations and Public Policy. Mergers and Acquisitions.

Aviation and Aerospace. Disaster Recovery and Government Services. Drug, Device and Life Sciences. Financial Services. Under the current reasonable cost-based payment system, an all-inclusive rate is determined annually for each FQHC and is subject to productivity standards and an upper payment limit.

The payment limits are adjusted each year by the MEI. Encounter-Based Per Diem Rate: To develop a system consistent with the statute that balances the need for appropriate payments to FQHCs, maintains administrative simplicity, and preserves access to care for beneficiaries, CMS is proposing payment to FQHCs based on a single encounter-based per diem rate per Medicare beneficiary.

The encounter-based per-diem base rate would be calculated based on an average cost per encounter. This amount may be changed in the final rule based on more current data. The encounter-based per-diem rate would have the following adjustments:.

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