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California Federally Qualified Health Center Alternative Payment Model: implementation guide
California Federally Qualified Health Center Alternative Payment Model: implementation guide
The FQHC APM is designed to move away from the traditional fee-for-service (FFS) payment system, which rewards the volume of services provided, to a model that rewards high-quality and cost-effective care that is coordinated, team-based, convenient to access, and best meets patient needs. Under the traditional prospective payment system (PPS), FQHCs are paid for face-to-face encounters with billable providers. Payment is based on volume of visits rather than value, which can discourage innovation and limits the ways in which providers and teams can care for their patients. Value-based payment (VBP) arrangements have the potential to remedy some of these issues in five meaningful ways by: 1. Giving health centers flexibility to provide care in the ways patients need and want 2. Allowing health centers to make critical infrastructure improvements 3. Helping improve patient outcomes 4. Helping deliver comprehensive, team-based, patient-centered care 5. Improving accountability by rewarding health centers that improve quality of care.
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