Is there an Association between Quality Care and Financial Performance in Community Health Centers?

Abstract

This study examined the relationship between Community Health Centers’ (CHCs) quality of care measures and their financial performance. Using a national sample of 992 CHCs, we also tested the mediating effect of patient visits per patient per disease on the association between clinical and financial performances.

Our study’s findings showed that quality of care was related to the CHCs’ financial performance. For example, one percent increase in a health outcome variable – controlled hypertension was associated with 0.023 percent increase in their financial performance.

Health care providers need to develop strategies that balance improving their organization’s financial performance and providing the best care for their patients. As such, this study’s findings can assist CHC administrators and other stakeholders to make informed decisions when considering quality improvement initiatives by understanding that a focus on quality of care can affect not only patients’ health but also the fiscal health of provider organizations.