Connect with us

State News

Federally Qualified Health Centers in Virginia Sue State for Low Medicaid Reimbursements

Published

on

Fifteen Virginia health centers on Tuesday announced they are suing the state government, claiming it has violated state and federal law through underpayments on Medicaid reimbursements.

The collection of medical providers is designated as Federally Qualified Health Centers (FQHCs), a type of nonprofit health clinic that is federally funded. They provide primary care services regardless of people’s ability to pay, and paid services are offered on a sliding scale.

FQHCs are a go-to health care source for people insured through Medicaid, and FQHCs are reimbursed through the state-federal joint program for certain expenditures.

In a suit filed in federal court, the plaintiffs allege that the Virginia Department of Medical Assistance Services (DMAS) has violated state and federal law through years of under-reimbursement. The suit alleges that for 25 years, DMAS has paid less than the average cost per visit for services the health centers provide to Medicaid patients, which has eaten into the FQHCs’ other sources of funding.

Brian Harris, CEO of the Greater Prince William Community Health Center, said that the coalition has spent the past four years attempting to resolve the matter with state policy makers out of court. The Northern Virginia FQHC is among the 15 from around the state involved in the filing.

“We’ve exhausted every other option before coming to this point,” he said. “Legal action is now necessary to protect the long term viability of FQHCs in Virginia and the patients who rely on us.”

In their suit, the plaintiffs argue that DMAS has set arbitrary payments when calculating the prospective payment system (PPS). This is when Medicaid pays health care providers a predetermined amount for services, rather than an itemized amount based on individual services provided.

The suit claims that DMAS has “systematically understated the statutorily mandated PPS rate.”

Virginia’s group of FQHCs isn’t the first cohort of centers to sue their state government over the matter — Connecticut health centers did the same earlier this year. A similar 2023 case in Florida saw the court side with the FQHCs.

Harris and other CEOs of fellow health centers in Virginia’s suit said in a press call Tuesday that FQHCs are “safety net” providers that often operate in areas where they are either the only affordable or only local health care option.

As the centers become financially strained, patients can face longer waitlists for appointments, reduced clinic hours or types of services, or risk of closure to some clinics. Harris also emphasized that local clinics offer not only health care but are also employers, so loss of services or clinics overall is an effect on local jobs and economies, too.

Virginia hospitals, clinics brace for federal health care changes

Ted Waters, who is providing legal counsel on the suit, noted that it comes at a time when providers are already bracing for financial losses as thousands of Virginians are at risk of losing Medicaid coverage.

A reconciliation bill that Congress passed last summer entails forthcoming changes to Medicaid eligibility that are projected to make thousands of Virginians and millions nationwide vulnerable to losing health insurance. President Donald Trump backed the measure.

FQHCs and free clinics are bracing for a surge of uninsured patients flocking to them for more free or reduced-cost care.

Since some uninsured people are more likely to put off preventative care until crises arise, hospitals suspect their emergency departments could also see surges — a probability that may  cause hospitals to experience losses that are likely to be passed onto consumers more broadly as hospitals negotiate with private insurers.

“What is already a crisis is going to be exacerbated,” Waters said.

With their suit filed, he added that the groups hope their case can “fix the issue (of low reimbursement rates) going forward.”

 

by Charlotte Rene Woods, Virginia Mercury


Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501 (c) (3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis for questions: info@virginiamercury.com.

Front Royal, VA
41°
Cloudy
6:28 am7:54 pm EDT
Feels like: 39°F
Wind: 4mph WNW
Humidity: 81%
Pressure: 30.21"Hg
UV index: 0
TueWedThu
66°F / 52°F
75°F / 54°F
84°F / 57°F
Opinion15 hours ago

Why We Must Approve Redistricting

Interesting Things to Know15 hours ago

Grow Your Own: Seedlings Offer Simple Start to Gardening Season

Community Events16 hours ago

From Lanterns to Liberty: Warren County Celebrates 250 Years of American Independence

Mature Living22 hours ago

Trendy Haircuts for People Aged 50 and Over

Local Government2 days ago

Front Royal Council to Hold Public Hearing on Taxes and Utility Rates

Community Events2 days ago

Community Meeting to Highlight Amendments and Voter Participation

Local News2 days ago

I-81 Lane Closures Expected as Construction Ramps Up in Harrisonburg

State News2 days ago

State Launches Initiative to Boost Disaster Readiness Across Virginia

Community Events2 days ago

‘Barks & Bags’ raises $50,000 for County Humane Society and Animal Shelter operations!

State News2 days ago

New $15.3M GO Virginia Funding Aims to Strengthen Economy Statewide

Crime/Court2 days ago

Meth, Marijuana Lead Large Drug Seizures in Virginia Weekly Report

Obituaries2 days ago

Patricia Ann Millar (1935 – 2026)

Local News2 days ago

VDOT: Warren County Traffic Alert for April 20 – 24, 2026

Historically Speaking2 days ago

1968 and Now: When Space United a Divided Nation

Real Estate2 days ago

Ask the Expert: The Seller of a Home We Like Says Assuming His Mortgage Would Be a Good Deal For Us. Would It?

Home2 days ago

3 Surprising Benefits of Summer Camp

Interesting Things to Know2 days ago

When America Almost Introduced Hippos to the Bayou

Local Government3 days ago

Town-County Liaison Committee Takes Decisive Steps on Tourism

Regional News3 days ago

National Guard ‘Follows the Constitution,’ General Says of Troops Possibly Deployed to Polls

Community Events3 days ago

Learn to Save a Life: Free Fentanyl Awareness Event Set for April 29

Local News3 days ago

Valley Health Changes Staffing Contracts, Trims Service Citing ‘Big Beautiful Bill’

Regional News3 days ago

Conservation Groups Raise Alarm as Potomac River Named Most Endangered in the Nation

Business Growth Series3 days ago

Business Growth Series: Are You Easy to Find — or Easy to Forget?

Regional News3 days ago

‘Shirtless in a Hot Tub with Kid Rock’: Democrats in Congress Question RFK Jr. Priorities

Interesting Things to Know3 days ago

Business Ingenuity: Tackling Today’s Challenges With Innovative Ideas