Beyond the Grant: Diversifying Funding Streams

For years, FQHCs and CHCs have done an incredible job delivering high-quality care in underserved communities. But in 2025, the financial strain is real—and growing. While Congress passed a short-term funding extension through September, long-term funding remains uncertain. Meanwhile, shifts in Medicare, Medicaid, and telehealth reimbursement are creating new challenges that threaten financial sustainability.

Relying solely on grants just isn’t enough anymore. Health center leaders must think creatively and strategically about how to bring in new revenue. Below, we explore practical, affordable ways to diversify funding—without burning out already overstretched staff.

1. Strengthen and Expand Partnerships

Community partnerships can create opportunities for funding, service delivery, and long-term sustainability. Building these relationships doesn’t have to be resource-heavy—it’s about aligning missions and finding shared value.

• Partner with local hospitals or specialty groups to create referral pipelines and joint grant opportunities. For example, offering diabetes management classes through a local health system can attract shared funding while supporting patients.
• Collaborate with schools, food banks, or shelters to co-locate services. This can unlock funding from non-traditional healthcare sources, like education or housing grants.
• Build employer partnerships by offering workplace health screenings or behavioral health support. Many small businesses need affordable healthcare options for their workforce—and your FQHC could be the perfect fit.

2. Expand Billable Services Strategically

Adding new services doesn’t always mean building new programs from scratch. Look for low-lift ways to expand care that also bring in billable revenue.

• Behavioral health services are in demand and often reimbursable. If your FQHC isn’t already offering therapy, consider hiring a part-time counselor or leveraging telebehavioral health providers.
• Chronic care management (CCM) and care coordination programs are reimbursed by Medicare and Medicaid and can be managed with existing staff if structured well.
• Group visits (for conditions like diabetes or prenatal care) can improve outcomes, generate revenue, and support workforce efficiency.

3. Make the Most of Telehealth While You Can

Medicare’s telehealth flexibilities have been extended—but only through September 30, 2025. Now is the time to use them to your advantage while preparing for a potential funding shift.

• Focus on high-volume, high-need services like mental health, chronic disease follow-ups, or medication management that translate well to virtual visits.
• Use telehealth to reduce no-shows and improve access for patients in rural or transportation-challenged areas—this boosts both patient outcomes and visit revenue.
• Stay on top of policy changes so you’re not caught off guard if flexibilities are rolled back. Build in-person care pathways now as a backup plan.

4. Consider Outsourcing Revenue Cycle Management

Outsourcing your billing and RCM can significantly increase revenue without the need for internal hiring or extensive staff training—making it a powerful tool for grant-stretched centers.

• RCM experts can help you capture revenue you’re currently missing, by improving coding accuracy, managing denials, and cleaning up aging AR. Many FQHCs lose thousands each month due to inexperience or time constraints in billing, and bringing on an outsourced team that has FQHC expertise in your state can make a huge impact.
• Outsourcing reduces the administrative burden on internal teams, freeing them up for more strategic or patient-facing work. Event just taking AR Cleanup off your staff’s plates can make a big difference in their ability to balance their tasks and help reduce burnout and staff turnover, especially in clinics where finance teams are wearing multiple hats.
• Improved cash flow from better collections allows you to rely less on unpredictable grant cycles and reinvest in service lines or community initiatives that generate additional revenue. Outsourcing can help your health center generate predictable and reliable income from your own programs and services.

5. Leverage Data to Attract New Funding

Funders, whether government or philanthropic, want to see impact. The better your data, the stronger your case.

• Track patient outcomes, cost savings, and service reach to show how your clinic improves community health and reduces system-wide costs.
• Use data to build compelling grant narratives and partnership proposals. Even a simple dashboard showing reduced ER visits or improved blood pressure control can help win support from local funders or payers.
• Benchmark your performance against other FQHCs using UDS or state-specific data. This shows funders you know where you stand—and where you want to go.

Final Thoughts

Grants have long been the foundation of FQHC operations—but in 2025, they can’t be the whole story. By exploring partnerships, expanding services, using telehealth wisely, and optimizing your financial operations (yes, including outsourcing!), you can build a more resilient funding model that supports your mission for years to come.

Need help boosting your billing and finding hidden revenue? Learn how our RCM experts can support your team.