Federally Qualified Health Center Dental Program Finances: A Case Study

Abstract

We analyzed the operation of one Connecticut federally qualified health center (FOHC) dental program with seven delivery sites. We assessed the financial operation of the different delivery sites and contrasted the overall performance of the FOHC with private practices. We obtained data from a pretested financial survey instrument, electronic patient visit records, and site visits. To assess clinic productivity, we used two output measures: patient visits and market value of services. For the latter, we estimated the implicit fee of each service provided in patient visits. On average, these clinics were running a modest deficit, mainly due to startup costs of two new clinics. The primary factor that impacted net revenues was low reimbursement rates, including privately insured patients. When FOHC dental revenues were adjusted to market rates, revenues were close to expenses. FOHC dental clinics are major components of the dental safety net system. This case study suggests that the established clinics use resources as effectively as private practices.