Becoming a Federally Qualified Health Center (FQHC) Look-Alike can be a transformative step for a health care organization. The designation opens the door to enhanced reimbursement rates, access to 340B drug pricing, National Health Service Corps eligibility, and many other benefits. But as many organizations discover too late, pursuing FQHC Look-Alike status without first conducting a proper feasibility study can be costly, time-consuming, and, in some cases, unsuccessful.
As a consultant specializing in helping organizations navigate the FQHC Look-Alike process, I’ve seen firsthand how a thoughtful feasibility study can save organizations thousands of dollars and countless hours of staff time—while also improving the chances of a successful application.
The Risks of Skipping the Feasibility Phase
Pursuing FQHC Look-Alike designation is a significant investment. The Health Resources and Services Administration (HRSA) has strict requirements related to governance structure, service area needs, patient demographics, sliding fee scales, and the scope of services offered. These requirements aren’t negotiable—and failing to meet even one can derail the entire application.
Unfortunately, some organizations jump straight into preparing an application without taking a realistic look at their current capacity and readiness. Common pitfalls include:
Unrealistic assumptions about patient volume and service demand
Governance structures that don’t meet HRSA standards
Financial models that don’t pencil out
Lack of stakeholder support or political will in the community
Missing or incomplete community needs data
Skipping the feasibility step often means organizations end up spending tens of thousands of dollars on consultants, legal restructuring, and application preparation—only to have their application rejected or withdrawn.
What a Good Feasibility Study Should Answer
A well-executed feasibility study provides a clear, data-driven roadmap that helps organizations make informed decisions about moving forward—or not.
Key questions a feasibility study should address:
Is there a demonstrated unmet need in your service area?
Does your organization’s governance structure meet FQHC Look-Alike requirements?
Can you meet the clinical and enabling service scope HRSA requires?
What are the financial implications—both start-up and ongoing?
Is there community and stakeholder support for this transformation?
Are there operational, staffing, or infrastructure gaps you’ll need to address first?
The Value of External Expertise
Conducting an objective, comprehensive feasibility study takes more than just filling out a checklist. It requires understanding HRSA’s complex and evolving requirements, as well as best practices for community health center operations.
That’s where I come in.
With [insert your years of experience] experience in FQHC and community health center consulting, I provide organizations with:
Independent, data-driven assessments
Clear, actionable recommendations
Risk analysis and mitigation strategies
Roadmaps for next steps—whether that’s moving forward or strengthening your position before applying
A Smarter First Step Toward Look-Alike Success
If your organization is considering pursuing FQHC Look-Alike designation, the smartest investment you can make is a feasibility study at the front end. Not only will it help you determine if Look-Alike status is right for you, but it will also strengthen your application—and your chances of success—if you do move forward.
If you’re interested in help with a Feasibility Assessment, contact us at FQHC Associates and we’ll answer any questions you have.
