Strategies for FQHC and RHC Success in Community Health

A Two-Part Series in Honor of National Health Center Week

Welcome to this two-part series brought to you by members of our Rate Setting/Federal Compliance, Cost Report Attest, and Benefit/Program Integrity teams. Their specialized fluencies and disciplines combine in these posts and in their daily work to provide well-rounded perspective and expertise on services and program areas such as the federally qualified health centers (FQHCs) and rural health clinics (RHCs) honored by this observance.

In this first post, they look at the reasons for the observance, which align directly with our closely-held values and missions. They also evaluate the trends affecting these important facilities. In part two, they bring you their insights and recommendations for states dealing with influential factors affecting FQHCs and RHCs.

Each August, the National Association of Community Health Centers (NACHC) sponsors National Health Center Week (NHCW) to recognize the crucial role of community health centers in supporting the delivery of health care services to needy populations. The observance shines a light on the work and commitment of the nearly 1,500 community health centers (CHCs) around the country. Their efforts support government health and human services program efforts to enhance quality and improve outcomes for 32.5 million patients across nearly 16,000 communities each year.

The theme of the 2025 NHCW is Celebrating 60 Years of Improving Our Nation’s Health. NACHC has given each day its own theme, and each underscores an important aspect of CHCs, which include federally qualified health centers (FQHCs). FQHCs provide services to enrollees of the Medicaid agencies that are served by Myers and Stauffer state clients. Read on to find out why this observation is important to us, to our clients, and to their patient populations.

FQHCs: What They Are and What They Do

FQHCs are community-based primary care centers that receive funding under Section 330 of the Public Health Service Act, which allows the Health Resources and Services Administration (HRSA) to make grants. Some health centers are awarded FQHC look-alike status by HRSA but do not receive funding under Section 330 of the Public Health Service Act. FQHCs are charged with providing holistic, high-quality, and culturally competent care, no matter a patient’s financial situation.

FQHCs deliver a comprehensive range of services – primary care, dental, substance use disorder services, mental health, and more – and offer a sliding-fee scale. These facilities emphasize and prioritize accessibility and must adhere to mandated quality of care standards. They must also maintain a governing board comprising at least 51 percent of patients, which ensures input and representation from the very community members who use these services and allows patients to have a direct impact on policy and outcomes.

Current FQHC Trends

FQHCs are influenced by numerous internal and external factors that foster change and impact operations. We have identified some of the top trends below.

Rising Demand, Decreasing Workforce. Increased demand for services and higher patient volumes, coupled with workforce shortages, present a complex challenge for FQHCs. Given their federal funding requirements and mandates to meet quality standards, these issues often present operational hurdles. Staffing shortfalls not only limit access to care, especially in rural areas, but they also compromise community relationships and the health outcomes that depend on them.
Changing Service and Delivery Models. Recent trends focus on a patient-centered approach, with a shift from a fee-for-service model to a value-based payment model. This transition represents the future of healthcare delivery and aligns with Medicaid program goals of cost management, improved outcomes, and enhanced quality.
Better Technology Solutions. Improved technology solutions are pivotal in supporting the evolution of service and delivery models – a key driver for FQHCs in the current environment. The introduction of new technologies and stronger data analytics platforms work in tandem to enhance patient outcomes and elevate the overall quality of care.
Funding Challenges. New political administrations always mean change, and right now, new policies, including the One Big Beautiful Bill Act (OBBBA) are directly affecting FQHCs. While the bill, signed into law on July 4, 2025, does provide $50 billion in funding for the rural health transformation initiative over a five-year period, how the funding will be distributed has not yet been defined. This uncertainty poses significant challenges for FQHCs, as they rely on clear funding guidelines to plan and sustain their operations. Another noteworthy funding challenge is the expiration of HRSA’s Community Health Center funding program, which must be periodically reauthorized by Congress. The funding program is currently scheduled to end September 30, 2025.

Read Part Two of this series here, where our team provides their industry insights into influential factors – alternative payment methodologies and cost reporting, to name just two – affecting these health centers. They will also provide their recommendations on what to do and why.

Why Myers and Stauffer

Purpose driven. Exclusive focus. Government Programs.

Established in 1977, Myers and Stauffer is a nationally-based consulting and certified public accounting firm. For nearly 50 years, we have worked exclusively with local, state, and federal government health and human services agencies to help them accomplish their most critical goals for the nation’s most fragile people.

Our Rate Setting/Federal Compliance, Audit and Attest, and Benefit/Program Integrity teams provide full suites of services for these clinic and health center program areas.

Moreover, Myers and Stauffer’s teams integrate across the firm, providing significant benefits to our clients. Our structure of subject matter expertise-based teams under a common banner, each having a distinctive identity and a specific fluency across the full spectrum of compliance topics and government agency programs, gives us an edge.

This depth and breadth of knowledge and experience affords us the opportunity to provide our clients the best possible combination of talent, proximity, experience, and resources for any project. In practice, this means our teams collaborate to deliver superior results for clients seeking assistance with the varied dimensions of supporting FQHCs and RHCs.

We are here to answer any questions and help with any health and human services needs your agency may be encountering. Contact a member of our team today.