CMS recently published the final rule for a new Prospective Payment System for FQHCs effective for Cost Reporting Periods
beginning on/after 10/1/14. This is the first major revamp of Medicare FQHC payments in decades, and was a requirement of
the Affordable Care Act. CMS expects to increase total Medicare payments by 32 percent. Why is the industry so lucky to receive this large amount from CMS? Because FQHCs were very much favored in ACA, specifically, the legislation required that the new PPS remove two current limitations on FQHC rates: the provider productivity standards and the Upper Payment Limit.
On the face of it, this is really exciting news, but looking more closely, the reality is not as exciting. (more…)