Sustainability Considerations for the California Federally Qualified Health Center Alternative Payment Methodology

This brief from the California Primary Care Association outlines key sustainability considerations for Federally Qualified Health Centers (FQHCs) participating in California’s Alternative Payment Methodology (APM), including financial risks, data infrastructure requirements, and operational challenges. It highlights critical barriers, such as patient assignment misalignment and encounter data accuracy, that have limited early adoption of APM 2.0, while also identifying opportunities to strengthen future value-based payment models. This resource is particularly relevant for health center leaders navigating payment reform and planning for long-term financial sustainability under evolving Medi-Cal policies.