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Federally Qualified Health Centers: how they operate, what they provide and the funding threats they face

Health Care Committee · January 9, 2026
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Summary

BiState Primary Care Association outlined how FQHCs serve roughly one-third of Vermonters with primary, dental and behavioral services, operate on thin margins (about 75% patient revenue), and face threats from possible federal cuts to Section 330 grants and 340B savings.

Mary Kate Mollman, director of Vermont public policy at BiState Primary Care Association, told the Health Care Committee on Jan. 8 that Federally Qualified Health Centers are designed to be community safety-net providers that offer primary care, oral and mental health services, school-based care and enabling services such as transportation and nutrition support.

"FQHCs are intended to serve everyone," Mollman said. "We provide primary and preventive care, and we must participate in Medicaid and offer a sliding-fee scale up to at least 200 percent of the federal poverty level." She added that FQHC governing boards must be patient-majority, a requirement intended to root governance in community needs.

Mollman…

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