Accelerating Value-Based Payment in California's Federally Qualified Health Centers: Options for Medicaid Health Plans

States, health plans, and providers, including federally qualified health centers (FQHCs), continue to move away from fee-for-service payments toward value-based payment (VBP) arrangements. In California, as in other parts of the country, these payment arrangements give primary care providers greater flexibility and rewards for improving quality while reducing the cost of care.

This CHCS report, developed with support from the California Health Care Foundation and Blue Shield of California Foundation, highlights examples of promising FQHC payment approaches distilled from interviews with stakeholders in California and around the country. The VBP models featured are designed to give FQHCs more flexibility in delivering patient-centered care and the ability to reap financial rewards from improving quality and reducing costs across the larger health care system. The report describes ways health plans and FQHCs can address challenges and adapt value-based payment models for the FQHC setting that do not require state or federal action.