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

Sally Sterling Ellis Quale

Sally Sterling Ellis Quale

NORFOLK­ — Sally Sterling Ellis Quale, of Norfolk, Connecticut and St. Petersburg, Florida, formerly of Bronxville, New York, died unexpectedly of heart failure on July 7 at the age of 87.

Sally will be remembered for her deep commitment to her family and communities and for her warmth, kindness, intelligence, creativity …and, of course, for her beautiful smile and deliciously sweet sense of humor. She was a gentle leader, contributing her talents as a teacher, writer, musician, athlete and organizer.

Keep ReadingShow less

Dorothy McEnroe Casey

Dorothy McEnroe Casey

KENT­­ — Dorothy McEnroe Casey, 93, a longtime resident of Kent, Connecticut, passed away peacefully on Thursday, July 23, 2026, at New Milford Hospital in New Milford. Born on July 28, 1932 in Sharon, she was the daughter of the late Leo McEnroe, Sr. and Dorothy Belter McEnroe.

Mrs. Casey was a graduate of Amenia High School and a homemaker. On Dec. 1, 1951, at Immaculate Conception Church in Amenia, New York, she married John Finn Casey who died on April 17, 2006.

Keep ReadingShow less

Louise R. Black

Louise R. Black

MILLERTON — Louise R. Black, 86, born July 16, 1939, in Queens, New York, died on July 15, 2026, with her partner of 26 years, Mary Howard, by her side. She is also survived by her nephews David Black and Jason Black, and his wife, Kerri; and niece Tiffany Black and her husband, Shlomo Toledano.

After graduating from the University of North Carolina Women’s College and earning two master’s degrees, Louise taught physical education for 35 years at Scarsdale (NY) High School, chairing the department and serving as the first woman Athletic Director. An accomplished fencer, tennis player, and swimmer, Louise’s enduring fondness for sports included a love of the Brooklyn Dodgers, though she never quite recovered from their move to the West Coast.

Keep ReadingShow less
google preferred source

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

Mary Simmons

Mary Simmons

MILLERTON — Mary Simmons, 96, a fifty‑six‑year resident of Millerton, New York, and formerly a lifelong native of College Point, Queens, New York, died peacefully on July 26, 2026, at her daughter’s home in Sharon, Connecticut. Mary devoted her life to her family; to know her was to love her.

Born July 15, 1930, in College Point, Queens, New York, she was the daughter of the late Anthony and Sarah (Longo) Marano. On Oct. 26, 1952, in College Point, New York, she married Ray Daniel Simmons II. Their marriage lasted nearly sixty‑two years; Ray passed away on April 24, 2013. Mary was a longtime parishioner of St. Patrick’s and Immaculate Conception Churches, where she belonged to the Rosary Altar Society. For many years, she enjoyed spending winters in Florida with family and friends. Mary was famous for her Sunday macaroni dinners, which she lovingly prepared for her family and many dear friends throughout the years. All were welcomed, and it was always a packed house. Her greatest joy was spending time with her siblings, children, grandchildren, great‑grandchildren, and her large extended family. She will be deeply missed by all.

Keep ReadingShow less

Margaret Anita Layton

Margaret Anita Layton

STANFORDVILLE —Margaret Anita Layton passed away on April 30, 2026, after a recurring battle with cancer, surrounded by friends and loved ones. She was predeceased by her parents, Anita and Jack Egan, brother John P. Egan, III, and nephew Michael Egan. She leaves behind a brother, numerous nieces and a nephew, as well as a community of chosen sisters who loved her very much.

Margaret was born in the Bronx, New York, and moved to Clinton Corners as a small child. Margaret spent her adult life in Stanfordville, where she owned Margaret A. Layton, E.A. Tax and Business Consulting. Margaret was a lover of all animals and an avid horse enthusiast with an active presence in the draft horse community. Midge lived out loud. Her vibrancy left a mark that will never be forgotten and will be sorely missed.

Keep ReadingShow less

Join us for

Join us for


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.