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Why Most FQHC Strategic Plans Fail—and How to Build One That Delivers

Strategic planning has always been a requirement for Federally Qualified Health Centers (FQHCs). In today’s rapidly evolving market, the right strategic plan—centered on value-based payment (VBP) and value-based care—is also a competitive differentiator. CMS is accelerating the shift to VBP, and managed care plans are becoming more selective with their partnerships. FQHCs that treat strategic planning as a check-the-box exercise—or fail to directly integrate VBP into their roadmap—will fall behind.

 

Common Planning Pitfalls

We’ve seen FQHC strategic plans stall or fail for three primary reasons:

  1. Misalignment with reality: Plans often reflect mission, not market. They overlook emerging demographic shifts, payer strategies, or competitive threats.

  2. Lack of actionable structure: A vague list of priorities isn’t a roadmap. Without defined initiatives, owners, and milestones, momentum fades.

  3. Underdeveloped approach to VBP: Many FQHCs still avoid VBP out of concern that it may affect wrap payments. In truth, well-structured VBP models layer on top of wrap payments—creating upside with no downside risk to core PPS revenue.

 

Planning for Dual-Revenue Growth

FQHCs are already doing much of the work VBP demands—care coordination, disease management, and quality improvement. The opportunity is to translate that into shared savings, infrastructure payments, and aligned partnerships.

A strong strategic plan should:

  • Quantify VBP potential across Medicaid, Medicare, and duals
  • Evaluate existing managed care partnerships for upside opportunities
  • Define investment needs to enable success (e.g., data access, staff capacity, HIT systems)
  • Include “what-if” scenarios to model different growth paths and revenue streams
  • Engage the board, leadership, and frontline teams to drive alignment and buy-in

 

How COPE Health Solutions Supports Strategy & Growth

COPE Health Solutions partners with FQHCs nationwide to design and operationalize strategic plans grounded in VBP execution. We bring:

  • Proven frameworks to assess VBP readiness and payer alignment
  • Market-tested modeling to project revenue under multiple contracting scenarios
  • On-the-ground support to turn strategy into execution, from data enablement to payer negotiation

We’ve helped FQHCs increase shared savings, expand into MSSP, and launch IPAs—without compromising PPS stability.

Ready to build a strategic plan that positions your FQHC for growth? Our team can help assess your current state and pressure-test your roadmap against market trends, regulatory shifts, and payer incentives.

Reach out to us at info@copehealthsolutions.com to schedule a working session.

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