In 1989, Congress created the Federally Qualified Health Center ( FQHC ) program, which established a preferential payment policy for health centers by requiring cost-based reimbursement for both Medicaid and Medicare . [ 1 ] The policy designated FQHC services as a mandatory Medicaid service that all states must cover and reimburse on a cost-related basis, using the Medicaid prospective payment system.
