What should FQHCs look for when choosing an RCM or billing partner?

Choosing an RCM partner for an FQHC is a high-stakes decision. The wrong partner — even a competent general medical billing company — can leave significant revenue uncollected and create compliance exposure. Here is the evaluation framework:

Non-negotiable FQHC-specific expertise:

  • Does the vendor understand the FQHC PPS model for both Medicare and Medicaid? Can they explain qualifying encounter requirements without prompting?
  • Have they worked with FQHCs in your state? State Medicaid FQHC rules vary significantly — a vendor who knows Medicare FQHC billing but not your state’s Medicaid program is only half-equipped.
  • Do they have experience with Medicare cost report preparation and reconciliation? This is a specialized function that not all billing companies offer.
  • Do they understand HRSA compliance requirements — sliding fee scale documentation, UDS reporting, site visit preparation?

Operational requirements:

  • Experience with your EHR and billing platform (eClinicalWorks, NextGen, athenahealth, Epic, and others are common in FQHCs)
  • A defined process for same-day visit review — ensuring qualifying encounters are correctly identified and coded
  • Denial management experience with both Medicare Administrative Contractors (MACs) and state Medicaid programs

Performance accountability:

  • Request FQHC-specific performance data: qualifying visit rate, FQHC PPS denial rate, Medicaid encounter data rejection rate
  • Ask for references from FQHCs of similar size, payer mix, and service scope
  • Ensure the vendor tracks and reports performance at the encounter level — not just aggregate collections

Squadyen’s FQHC billing team has deep experience with PPS billing, state Medicaid encounter submission, and HRSA compliance requirements. We support FQHCs from day-to-day billing through cost report coordination.

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