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Publication Date

May 2018


Rachel Donlon

Hannah Dorr

Kitty Purington

National Academy for State Health Policy

Health Resources and Services Administration


Alternative Payment Methodology Toolkit

This toolkit is designed to help state policymakers to implement Medicaid value-based payment (VBP) methodologies for FQHCs. Based on lessons learned from states during the NASHP VBP Reform Academy, the toolkit provides background information, key considerations, and state strategies related to:

  • stakeholder engagement;
  • VBP methodology development;
  • measurement and reporting; and
  • FQHC readiness and practice transformation.

For states, value-based purchasing is an important policy lever to contain the growth of healthcare costs and improve quality of care. Including FQHCs in delivery system and payment reforms can help state policymakers improve care and reduce costs for some of their states’ most vulnerable populations who live in underserved areas and align state priorities for quality improvement across Medicaid providers.