Healthcare Data GlossaryProvider
FQHC: Definition and Healthcare Context
Full name: Federally Qualified Health Center
A Federally Qualified Health Center (FQHC) is a community-based health care provider that receives funding from the HRSA Health Center Program to provide primary care services to medically underserved areas and populations. FQHCs must serve all patients regardless of ability to pay and offer a sliding-fee discount schedule. Under Medicare and Medicaid, FQHCs receive an enhanced prospective payment rate. As of 2024, approximately 1,400 HRSA-funded health center grantees operate over 15,000 service delivery sites serving nearly 31 million patients annually.
Last updated: 2026-06-17Reviewed by: Dr. Jennifer Montecillo, MD — Gullas College of Medicine, 2019. Non-practicing medical reviewer.
How it’s used
- HRSA Uniform Data System (UDS): HRSA UDS data covers approximately 9,000 FQHC sites with patient demographics, clinical outcomes, and staffing data that Fonteum uses for access-gap research.
- HRSA Health Professional Shortage Areas (HPSA): FQHCs are frequently located in HPSA-designated areas; HRSA HPSA data provides shortage-area context for FQHC sites.
Frequently asked questions
- What is an FQHC?
- A Federally Qualified Health Center is a community clinic funded by HRSA that must accept all patients regardless of ability to pay and serve medically underserved populations.
- How are FQHCs paid by Medicare and Medicaid?
- FQHCs receive an enhanced all-inclusive prospective payment rate (PPS) from Medicare and Medicaid for each encounter, rather than separate procedure-by-procedure payments.
- How many FQHCs are there?
- As of 2024, approximately 1,400 HRSA-funded health center grantees operate over 15,000 service delivery sites across the United States.