Strategy: Revenue Diversification — 340B, Grant Stacking, and MCO Contract Negotiation
With PPS revenue under threat, FQHC leaders should diversify aggressively. Key levers: (1) Maximize 340B drug pricing savings — contract pharmacy arrangements can generate $500K-$2M annually. (2) Stack grants — HRSA Quality Improvement, SAMHSA CCBHC, state HCAI workforce grants. (3) Renegotiate MCO contracts — use CalAIM Community Supports as new revenue streams. (4) Bill CHW encounters under new Medi-Cal codes. (5) Implement co-visit billing systematically.
Key takeaways
- Contract pharmacy arrangements can generate $500K-$2M annually in 340B savings
- Stack grants: HRSA Quality Improvement, SAMHSA CCBHC, state HCAI workforce grants
- Use CalAIM Community Supports as new revenue streams when renegotiating MCO contracts
- Bill CHW encounters under new Medi-Cal codes and implement co-visit billing systematically
Primary source
NACHCFQHC Talent. (2026, February 27). Strategy: Revenue Diversification — 340B, Grant Stacking, and MCO Contract Negotiation. Primary source: NACHC. Retrieved April 28, 2026, from https://www.fqhctalent.com/intel/strategy-revenue-diversification
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