The funding uncertainty FQHCs experienced over the past year clearly highlighted the need for financial independence and reduced reliance on federal grants, to avoid future operational disruption. In our consulting work, we focus on three core areas (we call it the triangle of care) that work together to generate sustainable growth and financial stability.
First we optimize the revenue cycle to maximize revenues, increase profitability, and improve cash flow – this provides a solid foundation to build upon. In case you missed the RCM tips we offered in our previous newsletters, look for these handy fact sheets on our website:
- 5 ways to optimize your revenue cycle process
- The importance of accurate credentialing
- How to improve your cash flow and profitability by submitting “clean” claims
Once the revenue cycle process is functioning as efficiently as possible, we check whether the 340B pharmacy model is profitable – since this is an area where we often identify significant growth opportunity. In our latest Fact Sheet titled Review your pharmacy model. It can help you meet patient and revenue goals. we highlight four areas where change could make a big difference to your bottom line and improve patient compliance.
After focusing on the revenue cycle process and 340B pharmacy model, we then look for ways to increase the number of patients and generate additional revenue streams, such as expanding the range of services offered, developing and leveraging partnerships with like-minded organizations and providers, and balancing patient mix to ensure financial sustainability.
Our formula for helping FQHCs achieve sustainable growth =
optimized RCM process + profitable 340B pharmacy model + practice expansion