Partnership Health Center (PHC) and Missoula County have announced a mutual agreement to formally separate, allowing PHC to become a fully independent 501(c)(3) non-profit organization while retaining its status as a Federally Qualified Health Center (FQHC). Lara Salazar, Chief Executive Officer at PHC, noted that both the County and PHC agree that the FQHC has outgrown the existing structure. “When PHC was small, our connection with the County helped us grow and manage essential functions like HR and finance,” said Salazar. “Now we are a large, vibrant clinic serving 18,000 patients annually. This transition will help us be more nimble and responsive to the healthcare needs of our community. Since we have effectively been operating independently for years, our patients can expect little change to the great care they have always received at our clinics.”
In 1993, Missoula County applied for a federal grant to establish an FQHC, as was required at the time. Soon after, PHC began as a small, volunteer-only organization in the basement of the health department. PHC has grown into a complex organization offering primary medical, dental, behavioral health, and pharmacy services.
“As an independent organization, PHC can more effectively leverage its healthcare-specific expertise to drive its mission,” said County Commissioner Juanita Vero. “We know there will be continued opportunities to work together to ensure that everyone in Missoula County has affordable access to healthcare.”
The structure of starting within a county government and transitioning to an independent organization is common for FQHCs across the U.S., with about 100 remaining that have not made the transition. This change follows similar moves by Flathead and Cascade counties, where county officials and the local Federally Qualified Health Centers announced formal separation. This change will not affect Missoula County taxpayers, as PHC does not use county tax revenue to operate.
PHC Board Chair Kathleen Walters emphasized that patients can expect minimal service changes. “As a patient myself, I see this as a great thing for PHC’s ability to support the health and well-being of our patients and community,” Walters said. “This is a positive change for our organization’s ability to operate nimbly in a rapidly changing healthcare landscape, strengthening our position as a trusted healthcare provider in this community.”
PHC and Missoula County will spend the next several months determining the formal details of the separation, with the goal of completing the process by the end of 2025.
