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
52°
Clear
6:49 am5:04 pm EST
Feels like: 52°F
Wind: 3mph W
Humidity: 57%
Pressure: 29.93"Hg
UV index: 0
TueWedThu
72°F / 41°F
70°F / 45°F
57°F / 43°F
Local News23 hours ago

Their Military Service Ended, But Their Commitment to Serving Others Never Did

Interesting Things to Know23 hours ago

Route 66 Turns 100: The Highway That Became America’s Mother Road

Local Government2 days ago

Front Royal Calls for Voluntary Water Conservation as Shenandoah River Levels Drop Again

Community Events2 days ago

Salvation Army Kicks Off Red Kettle Campaign in Front Royal, Calling on Community to Ring the Bell

Historically Speaking2 days ago

Constitution 101: Intellectual Property Clause

Obituaries2 days ago

Charles Frederick “Chucki” Henry II (1963 – 2026)

Local News2 days ago

After 164 Years, Young Civil War Soldier Finally Laid to Rest at Arlington National Cemetery

Health2 days ago

The Cheapest Medicare Plan Could Cost You More: Three Things to Check Before December 7

Interesting Things to Know2 days ago

Can Sound Waves Put Out a House Fire? Startup Says Its Technology Could Replace Sprinklers

Local News3 days ago

VDOT: Warren County Traffic Alert for Nov. 9 – 13, 2026

Livestream - WCHS3 days ago

River Rivalry Showdown Tonight: Warren County vs. Skyline Live on Royal Examiner

Local News3 days ago

Virginia Changes Driver’s License Requirements for Young Adults Starting January 1

State News3 days ago

GOP Lawmaker Seeks Senate Investigation, Possible Expulsion of Sen. Louise Lucas

State News3 days ago

At SCC hearing, Virginians say Dominion-NextEra merger could mean higher bills, new risk

Opinion3 days ago

Commentary: In This Year’s Midterms, the Rest of the Country Learned What Virginia Has Known for a While

State News3 days ago

Voter turnout for Virginia’s constitutional amendments transcended partisanship

State News3 days ago

Virginia’s Abortion and Marriage Amendments Face Court Challenges Following Voter Approval

National News3 days ago

Democrats Won Congress. Now They Have to Figure Out How to Deal With Trump

Business Growth Series3 days ago

Business Growth Series: Clear Thinking Leads to More Customers

Community Events3 days ago

Reaching Out Now Brings Back the Old-Fashioned Telethon With a Modern Twist for Giving Tuesday

Interesting Things to Know3 days ago

A Boy, a Marine, and a Christmas Wish List: The 1997 Toys for Tots Commercial Still Touches Hearts

Health3 days ago

Forgetfulness or Alzheimer’s? Warning Signs Families Shouldn’t Ignore

Interesting Things to Know3 days ago

Pulled Over by Police? Why You Shouldn’t Reach for Your License Right Away

Local News3 days ago

Scouting for Food Returns November 7 and 14 to Help Feed Families Across the Shenandoah Valley

Local News4 days ago

Front Royal Named 2026 Top Adventure Town by Blue Ridge Outdoors Magazine