Thank you!
Your support is sustaining the future of local news in our communities.

Health center advocacy group launches legal action over ‘inadequate’ Medicaid reimbursement

“We want DSS to follow the Federal law and compensate us accordingly so we can continue to care for our most vulnerable populations, and we need that to happen now.”

—Joanne Borduas, chair, Community Health Center Association of Connecticut

Health center advocacy group launches legal action over ‘inadequate’ Medicaid reimbursement

An exam room at Community Health and Wellness Center in North Canaan.

Photo by Riley Klein

NORTH CANAAN — The new federally qualified health center in North Canaan has treated more than 1,000 patients since opening its doors last summer to strong demand in the Northwest Corner. However, operators of that facility, and others like it in Connecticut, said they are facing a “serious financial crisis” because Medicaid reimbursements have failed for decades to cover the actual costs of providing essential services.

In response to the longstanding problem, the not-for-profit Community Health Center Association of Connecticut has filed a Declaratory Ruling Request with the state Department of Social Services regarding that agency’s legal obligations for setting and revising Medicaid reimbursement rates for the state’s federally qualified health centers, also referred to as FQHC’s.

The legal action follows more than 18 months of administrative rate requests and unsuccessful negotiations with DSS, according to a statement issued by the association on March 11, which noted:

“After great effort made by the FQHC’s to work with DSS and reach resolution, the offer made by DSS offers inadequate rate adjustments, failing to address the FQHCs’ financial concerns, and requires them to surrender their due process rights under the law.”

Joanne Borduas, who chairs the association’s board of directors, said DSS’s offer was for “less than reasonable costs and came with unacceptable policy stipulations that we would be made to agree to in order to get the grossly inadequate proposed rate rebasing, which would be paid over a four-year schedule.”

“Our request to DSS was clear,” said Borduas, who also serves as CEO of Community Health and Wellness Center of Greater Torrington which also has centers in North Canaan and Winsted.

“We want DSS to follow the Federal law and compensate us accordingly so we can continue to care for our most vulnerable populations, and we need that to happen now because our 440,000 patients, 264,000 of whom are enrolled in Medicaid across our FQHC network, need us.”

Borduas noted that the decision to move forward comes after years of CHC/ACT and health centers making “good faith efforts” to get this important process changed to comply with federal law.

She said the financial strain on the state’s health centers has reached a point where vital services are at severe risk, including those under the umbrella of Community Health and Wellness Center.

“As of now we continue to operate without additional cuts or layoffs, however, it is difficult to fill vacant positions. It is difficult to recruit in this environment. We need to stay competitive with workforce wages in order to recruit providers, and that is difficult to do.”

She added that “We cannot provide raises for our staff who are extremely valuable, care about our mission and the people we serve and who work hard every day, and we cannot think of expanding services to meet community needs because there is an associated cost.”

In response to Declaratory Ruling Request filed with the state Department of Social services, that agency’s spokesperson, Christine Stuart reported on March 13 that the department acknowledges receipt of the request and “shall be analyzing and responding in due course and in compliance with statutes pertaining to petitions of state agencies for a declaratory ruling.”

DSS 2024 report: state’s method cost effective

In 2024, the Department of Social Services issued a “final report” into the state’s Medicaid program which found the state’s operating methods to be “cost-effective and high-performing, while identifying some areas where further improvements can be made.”

The analysis, which was conducted by Accenture and Manatt at the request of the state, evaluated the current program’s cost efficiency, quality and access, “while also exploring whether other models of operations could be an improvement over the current system, which operates through an administrative services organization model.”

The report found that Connecticut’s program “stands out as a model of cost-efficiency, with per capita spending 14% lower than the average of most northeastern states, and administrative costs significantly lower than managed care states (3.8% vs. 9.4%).”

The DSS “final report” further noted: “It also shows that the state is meeting national benchmarks to provide reliable service delivery while maintaining fiscal responsibility and is performing above the median on approximately 70% of national adult and child quality measures,” and suggests other states “could benefit from reviewing Connecticut’s program as a blueprint to achieve similar results.”

The Community Health Center Association of Connecticut is not convinced.

It maintains that as the state’s health centers begin to “suspend vital services, freeze hiring and deplete their cash reserves,” they have been left with no choice other than to pursue legal remedies. “They are not seeking special treatment, but simply asking DSS to follow the law as written.”

CHWC’s dental services ‘not sustainable’

Speaking to her experience as CEO of Community Health and Wellness Center of Greater Torrington, Borduas explained that adjusted rates for medical and mental health were received by the state Department of Social Services for adding the North Canaan Health Center.

“Medical rates per our 2024 cost per Medicaid patient leaves a $122.48 gap between reimbursement and cost per patient. This difference,” she noted, “is what we lose for every patient enrolled in Medicaid that we care for.”

Behavior health is better compensated, said Borduas, but dental, which was offered at Community Health and Wellness Center’s Torrington and Winsted locations, is compensated $137.15 below 2024 costs and as a result, “CHWC has had to unfortunately suspend our dental services having incurred $350,000 in losses for restorative care in 2024.”

That included services like dentures, bridges, crowns and root canals, and an analysis of full services is in process and will likely yield greater losses, said Borduas. “The low Medicaid reimbursement that applies to 60% of our patients, the large gaps in payments are simply not sustainable.”

440,000 patients served by FQHC’s

Connecticut’s federally qualified health centers provide critical medical, dental and behavioral healthcare to more than 440,000 of the state’s neediest and most marginalized residents.

On average, 60% of patients at the statewide centers have Medicaid coverage, where their care cannot be denied, according to the association.

“The FQHC’s need a rate-setting process that makes sense and follows the law, to ensure that all Connecticut residents, regardless of their income or background, can continue to access the care they need,” added Borduas.

Shawn K. Frick, CEO of the Community Health Care Association of Connecticut, noted that “The Connecticut legislature has been consistently supportive of our work, but our attempts to address this issue through the legislative process have been consistently opposed by the administration.”

Latest News

Francis Lynehan

Francis Lynehan

DOVER PLAINS — Francis “Butch” Lynehan, 75, a twenty-year resident of Dover Plains, New York, formerly of Sharon, passed away unexpectedly on Thursday, May 7, 2026 at Vassar Bros. Medical Center in Poughkeepsie, New York.

Born Aug. 29, 1950, in Sharon, he was the son of the late William W. and Nellie (Kluun) Lynehan.

Keep ReadingShow less

Richard McGriff

Richard McGriff

TACONIC — Richard McGriff died unexpectedly on May 16, 2026. This is a collection of loving reminiscences.

With a smile like that and a laugh like that and a soul like that, how could you not love him? Macey Levin and Gloria Miller

Keep ReadingShow less
Juneteenth graduation celebrates Berkshire’s next generation of leaders

Cohort 2026 members Abigail Horace, Adam Liccardi, Adrian Lynch, Cameo Brown, Chauncey Dozier, Claudette Grant, Erline Saintilet, Harmony Edwards, Kamayue Gomes, Mackenzie Colvin, Otis West, Shadre Domingo, TJ West and Tyeesha Keele-Kedroe and Blackshires’ leadership team John Lewis, Patrick Danahey, Dubois Thomas and Julie Haagenson gather at the Blackshires City Hall Fishbowl alongside Mayor Peter Marchetti and city officials Michael Obasohan, Brandon Gill, Katherine VanBramer, Heather Brazeau, Justine Dodds and Jesse Tobin McCauley.

Provided

When designer Abigail Horace joined the Blackshires Leadership Accelerator, she was looking for support as the founder of the Black Berkshires Social Club, which creates culturally grounded social spaces for Black and BIPOC residents in the region. What she found was something deeper: a community of peers invested in one another’s success.

“Finding Blackshires has been transformative,” Horace said. “Being a BIPOC founder in this region can feel isolating, and this community has changed that. They see my work, champion my business and have opened doors I couldn’t have opened alone.”

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

Forged by curiosity: Art, craftsmanship and big fun with Izzy Fitch

Izzy Fitch at Battle Hill Forge in Wassaic.

Madi Long
I’m not really inventing anything new. I just tweak it a little bit.— Izzy Fitch

A steel praying mantis stands among garden accents at Battle Hill Forge in Wassaic, its folded forelegs ready for prayer and mischief in equal measure.

“She’s very nice,” said blacksmith, sculptor and Battle Hill Forge owner Izzy Fitch, patting the giant insect affectionately. Then he added, “Just don’t go out to dinner with her.”

Keep ReadingShow less
Unexpected subjects, familiar beauty in new Kent exhibits
Millerton-based artist Alexis England with her flamingo and mandrill portraits at Peggy Mercury in Kent.
D.H. Callahan

Kent Barns was alive with art on Saturday, June 13, as three new shows opened at Peggy Mercury and Kenise Barnes Fine Art, featuring a variety of fascinating paintings and drawings from four local artists.

Peggy Mercury, which in just two years has earned a reputation for curating remarkable collections of fine beauty products and accessories, continues to find exciting art to complement its offerings. The new show, “Portraits,” features four pairs of paintings by Millerton-based artist Alexis England. The “portraits” she paints, however, feature some pretty unexpected sitters.

Keep ReadingShow less
Stonewood Farm launches chefs in residence program
Jocelyn Ueng is the first Chef in Residence at Stonewood Farm.
Provided

Stonewood Farm in Millbrook is expanding its educational and community food programs this summer with the launch of a new Chefs in Residence program, an eight-week immersion that brings culinary professionals to the nonprofit farm to live, cook, teach and work alongside farmers.

The program is led by Kristen Essig, Stonewood’s director of culinary outreach and development, an award-winning chef whose background includes work with Emeril Lagasse and multiple James Beard Award nominations.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.