HHS Launches Demonstration Project to Improve Care for Medicare Beneficiaries through Federally Qualified Health Centers

The U.S. Department of Health and Human Services (HHS) recently announced a joint initiative between the Centers for Medicare and Medicaid Services (CMS) and the Health Resources Service Administration (HRSA) that allocates $42 million dollars to improve care for Medicare beneficiaries in 500 Federally Qualified Health Centers (FQHC) in 44 states across the country. This initiative is expected to help up to 195,000 beneficiaries.

According to HHS, the Advanced Primary Care Practice demonstration is aimed at showing how the quality of care can be improved and health care costs can be reduced. The new program also is intended to assess the effectiveness of the advanced primary care model, also known as the patient-centered medical home (PCMH). The providers will be paid a monthly care management fee for each beneficiary receiving primary care at their facility. This initiative was authorized by the Patient Protection and Affordable Care Act (PPACA), also referred to by some in short form as the “Affordable Care Act.”   

“Health centers are integral parts of our communities,” said CMS Administrator Donald M. Berwick, M.D. in an HHS press statement. “This initiative will give participating health centers the help they need to improve care for many people with Medicare who rely on them as their main source of care.”

The three-year demonstration program began on November 1, 2011, and will end on October 31, 2014. Health care providers will use the funds received under this initiative to increase available hours, which will allow for same-day appointments a well as the ability to better meet urgent care needs.

Primary care practices will be evaluated over the three-year period and clinics that are providing better access to care will be rewarded with additional funding. Each FQHC will have a list of beneficiaries assigned to their location.

 “The lessons learned from this demonstration project will help all community health centers improve on their long–standing commitment to providing high quality, patient-centered primary care,” according to Health Resources and Services Administration (HRSA) Administrator Mary K. Wakefield, PhD., R.N. in the statement. “This program will help strengthen the relationship between the more than 8,100 health center sites HRSA helps fund and the communities they serve.”

At the close of the three-year window, the CMS Center for Innovation (Innovation Center) will independently review the data collected over the course of the demonstration and also assess how the program has impacted the number of hospital and emergency room visits, and the quality, availability and cost of care to Medicare beneficiaries.

This initiative is significant because not only is it aimed at improving the overall health of the American public, but it also will provide additional jobs within the health care industry.

We will continue to keep you up-to-date on this issue as it develops. Please visit www.HealthcareExchange.com for blog posts, polls, surveys and numerous resources, or you may visit www.benefitmall.com to view Legislative Alerts.


The views expressed herein do not necessarily reflect the official policy, position, or opinions of BenefitMall. This update is provided for informational purposes. Please consult with a licensed accountant or attorney regarding any legal and tax matters discussed herein. 

1 Comments

When are we going to hear

Anonymous (not verified) says:

When are we going to hear someone in power start to give comparisons to the former HMO's and how they were denigrated for doing just what is now supposed to save the American patient? Weren't HMO's blasted unmercifully for incentivizing providers to save $$$?

Post new comment

Your E-mail address will not be published.
  • No HTML tags allowed
  • Lines and paragraphs break automatically.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Each email address will be obfuscated in a human readable fashion or (if JavaScript is enabled) replaced with a spamproof clickable link.

More information about formatting options

About BenefitMall

Healthcare Exchange is powered by BenefitMall and was designed to serve as a platform for exchanging ideas and finding solutions for healthcare. Learn More

Take a tour of BenefitMall’s new Broker Workspace, click here to view an online demo.