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What Are FQHCs, & Should Life Sciences Manufacturers Even Care About Them?

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health clinic icon_circle cropIf you work in life sciences, whether in pharma, diagnostics, or vaccines, Federally Qualified Health Centers (FQHCs) might not be on your radar. Many manufacturers focus their commercial strategies on large health systems, private practices, and specialty networks, leaving FQHCs largely untapped. And with the current political uncertainty around healthcare funding, it’s fair to wonder whether investing resources in this segment makes sense.

This post makes the case for why FQHCs are worth considering. Future posts will break down the specific tactics, challenges, and opportunities life sciences manufacturers should explore when engaging with these organizations.

What Are FQHCs?

FQHCs are federally funded, community-based health centers that provide primary care services to underserved populations. Spread across 1400+ locations nationwide, these centers serve over 30 million patients, including a significant proportion of low-income, uninsured, and underinsured individuals. Many pharmaceutical companies are looking for methods to help underserved populations and FQHCs can offer the opportunity at scale.

In exchange for federal funding, FQHCs must meet strict quality measures set by the Uniform Data System (UDS). These measures cover areas like cancer screenings, chronic disease management, HIV care, and vaccinations. This mission also gives FQHCs a bias for identifying quality improvement opportunities for their underserved communities and leveraging their technology to measure improvements.

Why Haven’t Many Life Sciences Manufacturers Focused on FQHCs?

Despite their scale and impact, FQHCs have historically been a lower priority for many life sciences manufacturers due to several perceived barriers:

  • Lack of direct access. Many manufacturers don’t have a dedicated sales force calling on FQHCs or the education about these organizations and their unique needs for the customer-facing teams.
  • Pricing pressures. Government-funded centers can leverage 340B drug pricing discounts, meaning lower margins for manufacturers.
  • Operational complexity. FQHCs use a wide range of EHRs, including OCHIN, Epic, AthenaOne, eClinicalWorks, Oracle Health and NextGen, which can make it challenging to have one approach to helping these customers upgrade their clinical workflows to improve the quality of care.

These factors lead some manufacturers to conclude that FQHCs are not a priority market. But that might be a mistake.

Why Should Life Sciences Manufacturers Care About FQHCs?

FQHCs represent a large, typically underserved, patient population with a high burden of disease. That makes them a crucial access point for screening, prevention, and treatment initiatives.

FQHCs Must Hit Key Quality Measures, Creating Demand

Because FQHCs are organized to meet quality benchmarks, they are actively looking for solutions to improve outcomes in areas like:

  • Cancer screenings for breast, cervical, and colorectal cancer
  • Chronic disease management for diabetes, hypertension, and cardiovascular disease
  • Infectious disease testing and treatment for HIV, Hepatitis C, STIs, and tuberculosis
  • Immunizations for childhood, adult, and COVID-19 vaccines

If a manufacturer’s test, drug, or vaccine aligns with these quality measures, FQHCs could represent a built-in customer base actively seeking ways to improve adherence.

Even when there are no government-required measures, there are opportunities to engage FQHCs with a quality-of-care message that they may be quick to grasp how they can impact their community.

The Patient Volume at FQHCs Is Too Big to Ignore

With 30 million patients, FQHCs represent one of the largest primary care networks in the U.S. If a company has a product targeting chronic conditions or preventive care, there’s a strong likelihood that a significant portion of its target patient population passes through an FQHC.

For example, a pharma company developing HIV treatments might already reach private clinics and specialty networks but could be missing a critical group of underserved patients who primarily receive care at FQHCs.

Technology and Workflow Integration Could Lower Barriers to Adoption

Historically, engaging with FQHCs has been challenging due to limited field sales presence and workflow integration hurdles. However, advances in EHR-based solutions, telehealth, and digital order pathways are making it easier than ever to support FQHC adoption.

For example, companies can develop EHR Guides for FQHCs that help clinicians easily order tests, prescribe drugs, or administer vaccines, reducing friction in clinical decision-making.

So, Should Life Sciences Manufacturers Bother with FQHCs?

If your company develops diagnostics, pharmaceuticals, or vaccines in high-priority disease areas, ignoring FQHCs could mean missing out on a major segment of the U.S. healthcare market. These organizations actively seek solutions to meet quality measures and improve patient outcomes.

Not organizing a specific approach for this community of provider organization represents a missed opportunity in addressing underserved communities.

Engagement requires a thoughtful strategy. FQHCs represent a compelling opportunity for life sciences manufacturers, especially those willing to tailor their approach to this unique setting.

What’s Next?

Do you want to rethink whether FQHCs should be part of your strategy? We provide FQHC expertise, create resources that can be used with the provider community, and educate customer-facing teams about engaging these customers. Reach out to us to set up a chat to see how we might be able to help.