Vermont federally qualified health centers warn of fiscal squeeze, seek state help for rates and residency funding

Leaders of three Vermont federally qualified health centers told a legislative committee this morning that mounting losses, shrinking cash reserves and federal funding uncertainty threaten primary care access in rural and urban communities across the state.

The chiefs of Community Health Centers of Burlington, Northern Counties Healthcare and Gifford Healthcare described a funding model they say no longer covers the full cost of FQHC care — including outreach, behavioral health, dental services and interpretation — and asked the state to adjust Medicaid reimbursement and provide one‑time workforce funding to start a residency program.

The centers said they serve large shares of Medicaid and uninsured patients and provide services other providers do not. "FQHCs do not turn away people because they can't pay," said Jeff McKee, CEO of Community Health Centers at Burlington, describing the centers as "the last mile of health care." McKee told the committee his organization had about 54 days of cash on hand and is "losing 2 and a half days a month," a pace he said would force closures or service reductions without new funding. He added that "a day for us is about $120,000," which the panel discussed as roughly…