HENRICO, VA – Virginia Community Healthcare Association (VCHA) today announced the
successful settlement of the Prospective Payment System (PPS) litigation involving 15 of Virginia’s
Federally Qualified Health Centers (FQHCs) and the Virginia Department of Medical Assistance
Services (DMAS).
The settlement resolves a dispute concerning Medicaid reimbursement methodologies that has
impacted Virginia’s community health centers for nearly 21 years. This resolution represents a
significant milestone for Virginia’s healthcare safety net and provides greater certainty for the
community health centers that serve hundreds of thousands of patients across the
Commonwealth.
“After nearly six years of advocacy and nine months of litigation, we’re pleased to reach a
resolution that recognizes the importance of fair and appropriate reimbursement for the essential
services provided by Virginia’s FQHCs,” said Tracy Douglas, Chief Executive Officer of VCHA. “At a
time when health centers are facing new challenges and uncertainty stemming from federal
healthcare policy changes, this settlement provides much-needed stability and allows us to focus
on what matters most: ensuring patients across Virginia continue to have access to affordable,
high-quality care.”
VCHA extends its appreciation to the Spanberger administration for its leadership, engagement,
and commitment to finding a constructive resolution. The Association recognizes the
administration’s willingness to work collaboratively with stakeholders and its commitment to
supporting Virginia’s community health center network and the patients it serves.
“We’re grateful for the leadership demonstrated by the Spanberger Administration and their
recognition of the critical role FQHCs play in Virginia’s healthcare system,” said Douglas. “Their
commitment to resolving this matter reflects an understanding that strong community health
centers are essential to improving health outcomes and expanding access to care
throughout the Commonwealth.”
Virginia’s community health centers serve as a vital component of the state’s healthcare
infrastructure, providing comprehensive primary care, behavioral health, dental services, and
other critical health services regardless of a patient’s ability to pay. The resolution of this litigation
marks an important step forward in ensuring the long-term sustainability of Virginia’s community
health centers and their mission of delivering quality, community-based healthcare to
underserved and vulnerable populations.
About Virginia Community Healthcare Association
Virginia Community Healthcare Association (VCHA), established in 1980, is a non-profit
membership organization that serves as the primary care association for Virginia’s community
health centers and look-alike health centers. VCHA’s mission is to advocate on behalf of, educate
and elevate our member health centers by enhancing their ability to provide affordable,
accessible, quality healthcare to the communities they serve regardless of their ability to pay. For
more information, visit www.vcha.org.
