Don't be complacent - The "C" in SAC stands for Competition!
As FQHC consultants, we are uniquely aware of the many organizations that are endeavoring to become FQHCs, exploring their options and engaging in FQHC Look-Alike planning. We always encourage organizations that reach out to us to partner with their local FQHC first.
However, for reasons that vary from previous failed partnership attempts to lack of interest by either party, we have assisted organizations in assessing a service area to determine whether or not an upstart has a chance of becoming an FQHC.
So wait, another organization can basically steal our grant?
Yes. The primary way to access Section 330 funds and become an FQHC is to apply for either a New Access Point (NAP) grant when there is a Funding Opportunity Announcement (FOA) or apply for a Service Area Competition (SAC) when there is a Notice of Funding Opportunity (NOFO) for their service area.
Existing FQHCs have to reapply for their funding when the Health Resources and Services Administration (HRSA) issues a SAC NOFO for their service area. This grant funding should not be taken for granted as neighboring organizations occasionally have success with SAC applications, essentially transferring the federal grant away from the FQHC to the new upstart.
Any nonprofit or public agency that can meet the eligibility requirements and chooses to apply is eligible to receive this funding. Operating as an FQHC can be a very welcomed funding source, turning community partners into competitors. FQHCs should be mindful of the potential for this competitive threat.
Here are 3 important steps you should take to protect your FQHC's funding:
1. Maintain compliance.
While this may seem like obvious advice, it is not hard to slide into non-compliance when attention is laser-focused on patient care, COVID, and a variety of other day-to-day issues that can take attention away from required policy approvals or updates to bylaws.
2. Meet the need.
SACs require a current Strategic Plan and Needs Assessment. Do not consider this a perfunctory exercise. Take it seriously and conduct a comprehensive needs assessment in your community so you know where you are strong and more importantly, where are vulnerable.
3. Ensure technical accuracy.
Make sure to submit a complete, technically accurate proposal before the due date. When your application gets disqualified for using the incorrect font, margin size, or page count, you only get a second chance to remedy it if you are the only applicant. As crazy as it sounds, FQHCs have lost their funding to other applicants just because the competitor submitted a technically accurate proposal.
We can help!
If you have any questions about your SAC application or need assistance putting it together, FQHC Associates can help. Our consultants have decades of experience and understand the challenges and pressures you're facing. Reach out to us today, and we'll get back to you within one business day.
Other Helpful SAC Resources
HRSA FAQs
https://bphc.hrsa.gov/programrequirements/sac-rd-faqs.html
SAC Information and Due Dates
https://bphc.hrsa.gov/program-opportunities/sac
About FQHC Associates
Running a successful health center presents unique challenges and often requires expertise in many different areas.
At FQHC Associates we don't just have theoretical knowledge of health center operations - We have decades of real world experience running health centers and a vast network of connections within the health center community.
If you have a problem, chances are we have dealt with something similar or know someone else who has.
