Two Paths into HRSA’s Health Center Program
There’s more than one way for community health centers to qualify for HRSA’s many benefits.
By Darrell Gardner, JD, Partner, Facktor
The allure of HRSA’s Health Center Program is immense for community clinics:
Eligibility to apply to Centers for Medicare and Medicaid Services (CMS) for reimbursement under FQHC Medicaid and Medicare payment methodologies;
Eligibility to apply for the Federal Tort Claims Act for medical malpractice liability protection;
Eligibility for the 340B Federal Drug Pricing Program;
Eligibility to receive automatic Health Professional Shortage Area (HPSA) designation;
Access to National Health Service Corps providers;
Eligibility to receive an annual cash base grant; and
Eligibility for one-time and ongoing supplemental funding from HRSA.
So where does a community clinic start? There are two paths into HRSA’s Health Center Program.
Path 1: Health Center Program Award
Community health centers, migrant health centers, and providers of healthcare for the homeless and/or residents of public housing must apply for Health Center Program grant funding by submitting an application in response to a competitive open funding opportunity announcement. HRSA assesses applications for eligibility and reviews them through an objective process. All HRSA applicants receive written notification of the result of their application review, including a summary of strengths and weaknesses. There are two types of applications:
New Access Point (NAP) awards provide operational support for new health care service delivery sites (i.e., new access points) that will deliver comprehensive, culturally competent, quality primary health care services. Applicants must propose at least one full-time, permanent new access point site whose main purpose is primary medical care. Applications may be submitted
By organizations that do not currently receive Health Center Program funding, or
By existing Health Center Program award recipients to expand their network of service delivery sites to new underserved populations and service areas.
NAP funding is based on Congressional appropriation; therefore, it may not be available every year.
Service Area Competition (SAC) awards ensure continued access to comprehensive, culturally competent, quality primary health care services for communities and vulnerable populations that are currently served by the Health Center Program. Applications may be submitted by organizations that currently serve or propose to serve an announced service area and its associated populations. Only one award is funded for each announced service area.
For information about the most recent NAP and SAC funding opportunities, see BPHC Funding Opportunities on the HRSA website.
Path 2: Health Center Program Look-Alike Designation
Organizations with Health Center Program Look-Alike designation do not receive Health Center Program funding; however, they are eligible for other Health Center Program benefits.
They receive automatic HPSA designation and may apply to the CMS for reimbursement under FQHC Medicare and Medicaid payment methodologies.
Look-Alikes are eligible to purchase discounted drugs through the 340B Federal Drug Pricing Program and may access National Health Service Corps providers.
Eligible organizations may apply for Look-Alike designation at any time.
Importantly, Look-Alike organizations also receive priority points during a NAP application due to their compliance with Health Center Program requirements and related Federal and State requirements.
To review detailed application instructions, see Health Center Program Look-Alikes on the HRSA website.
While it may be relatively easy to decide which path is right for you, successfully navigating HRSA qualification can be challenging, especially if you’re managing a healthcare center that is already coping with the extra challenges of COVID. That’s why it’s good to have the support of Facktor -- professionals who have guided [more than 000] community health centers through the application process.
If you want to take advantage of HRSA’s many benefits, but don’t think you have the time or capability right now, we can help you prepare for your HRSA Operational Site Visit and other qualification requirements, and help you submit your application for HRSA NAP Awards, HRSA SAC Awards, and/or HRSA Health Center Program Look-Alike applications. For health centers that have qualified for HRSA programs, we provide ongoing support to help you maintain eligibility and compliance, with services like help preparing HRSA Budget Period Progress Reports. Visit our Services Page to learn more, or
