Regulators suspended a health clinic in North Philadelphia, Quality Community Health Care Inc., from a federal program that supports primary care for low-income and underserved communities because the organization is four years behind on filing required audit reports.
The 30-day suspension, issued Thursday by the federal Health Resources and Services Administration, means Quality Community Health Care is prohibited from accessing the benefits of the federally qualified health center program.
Those benefits, restricted to nonprofit organizations, include an annual grant, higher Medicare and Medicaid rates, and medical malpractice insurance though a federal program. Quality Community Health Care’s grant for the year that ended June 30, 2025, was $3.2 million.
During the suspension, the clinic will have an opportunity to regain compliance.
“Delinquent audits and failure to meet basic program requirements are not acceptable,” the Health Resources Services Administration said in a statement. “The agency will continue to hold health centers accountable for meeting their financial and operational obligations so patients can trust the care they receive.”
Representatives of the clinic did not immediately respond to a request for comment. The clinic, opened in 1981, has three locations, according to its website.
The organization’s latest audit posted on a clearinghouse for organizations that spend at least $750,000 a year in federal funds was completed in March 2024.
It covered the 12 months that ended July 31, 2020. During that year, Quality Community Health Care had $4 million in revenue and an operating loss of $2.5 million.