What Is UDS, and How Can You Use It to Improve Your Practice?

Data reporting is a necessary chore for medical practices, particularly those receiving government funds.

Fortunately, modern software takes the hassle out of collecting data for programs like the Uniform Data System (UDS). And with the right tools and strategies, the data you collect for government reports can unlock greater efficiency and profitability for your practice.

What Is the Uniform Data System (UDS)?

The Uniform Data System is a federal reporting program intended to improve the quality of American healthcare. It collects aggregated data such as patient characteristics, services provided, health outcomes, staffing, and costs from medical practices caring for underserved or vulnerable populations.

Who Has to Report to UDS?

Medical practices that receive funding from the Health Resources and Services Administration Health Center Program are required to participate in UDS.

Lookalike practices – community health centers that meet all the requirements of the federal Health Center Program but don’t receive funding from it – are also required to report.

UDS Reporting Methodology

The UDS has two nearly identical reporting sections. All reporting practices are required to complete the Universal Report, which includes patient demographics, staffing, and financing for a clinic’s entire scope of services.

Practices being funded under HRSA Health Center Program Section 330 must also complete the Grant Report. It contains much of the same data as the Universal Report, but has fewer sections.

Reporting practices that are not funded under Section 330 do not have to submit a Grant Report.

Proposed Changes to UDS in 2025

The UDS Manual is reviewed and revised on a regular basis to keep up with the rapid advancements in healthcare.

Changes proposed for the 2025 UDS Manual include:

• Collecting data on pharmacological treatment for tobacco use cessation
• A new measure to track medication-based intervention for opioid use disorder
• A measure to capture screenings for Alzheimer’s disease and related dementias
• A two-part measure of the initiation and engagement of substance-use disorder treatment
• Updates to clinical quality measures to align the UDS with CMS electronic clinical quality measures

How UDS Can Help Your Practice

Collecting data for UDS isn’t just a chore you have to do for regulatory compliance. It can help you build a stronger practice through data-driven decision making, improved collaboration, and increased grant opportunities.

Assist With Data-Driven Decision Making

To optimize your practice, don’t just submit your report and go back to business as usual. Use the data you’ve collected to improve your business.

For example, information about patient demographics may uncover insights about populations to target with your marketing.

Services data could help you spot trends in demand so you know where to invest your resources.

With financial data, you can optimize processes to shorten your revenue cycle or improve payment collections.

Improve Collaboration

UDS is designed to support collaboration between Federally Qualified Health Centers (FQHCs) and other healthcare providers.

Small practices can benefit greatly from collaborating with one another. Together, you can leverage more resources and expand your reach in your community.

Increase Grant Opportunities

The main reason to complete UDS reporting is to remain compliant with federal regulations, particularly if you rely to any degree on government funding.

The data you collect for UDS can also help you win funding from other avenues. This data offers robust evidence of your impact in the community and the local need for your services. That evidence helps make a compelling case when your clinic applies for grants.

Best Practices for UDS Reporting

With the right approach, UDS reporting can be less of a burden to your practice. The keys are:

1. Preparing to collect data, 
2. Training your staff in UDS, and 
3. Integrating data collection into your workflow.

Prepare for the Year’s Data Collection

The UDS changes slightly from year to year. Review the relevant tables in each section well before the reporting deadline.

The reporting handbook that goes live in January can be accessed through the UDS Preliminary Reporting Environment starting in late October. Take advantage of this time to familiarize yourself with the sections and identify where in your practice the data will come from.

Throughout the year, schedule regular data audits of your system. This is a best practice even for clinics not required to report to UDS.

For example, if an audit shows ZIP code data is missing for a large number of patients, there is probably an issue with the way that data is being entered or with the way it’s being classified. Periodic checks catch errors like this early, while they are still easy to fix.

Finally, avoid making the same mistake twice. At least one week before submitting your report, look over the comments your reviewer left last year and make sure those issues have been corrected. Before submitting, review your report against the HRSA UDS Submission Checklist.

Train Staff for UDS Compliance

Fixing data errors is good; preventing them is better. Make sure all staff have up-to-date training on the systems they use to record patient and practice data. Emphasize the importance of filling out records accurately and completely.

Systems are more than software; they include the processes used to document patient encounters and clinic operations. Make these processes as clear and simple as possible, and be sure your staff understands the importance of fulfilling every step. Automate parts of the process wherever possible to make it easy for busy staff to comply.

In a larger practice, department heads may be responsible for submitting data for the section of UDS pertaining to their department — such as finance or HR. Hold an annual UDS training for these employees to cover changes to the year’s requirements.

Integrate Data Collection into Your Practice Workflow

UDS reporting is less of a lift when data collection is happening all year. Use the intelligent tools in your EHR and practice management software to automatically track and sort relevant data as it comes in.

Use your EHR’s reporting feature to monitor your performance throughout the year on clinical quality measures relevant to your specialty. These tools give you the insight to adjust processes and improve performance in real time, rather than waiting until the next reporting year.

Future Trends in Healthcare Reporting

Healthcare changes rapidly, driven by evolving technology and cultural shifts. In the coming years, expect reporting systems to make every effort to keep up.

Notable trends in the near future include UDS modernization, a sharper focus on healthcare equity, and a growing role for artificial intelligence (AI).

UDS Modernization

The UDS Modernization Initiative is trying to improve data quality while reducing the reporting burden.

The initiative is focused on technology that can streamline reporting, providing more granular data without putting more work on practice staff. Reporting practices will see the first stage of this in 2025 with the launch of UDS+.

While traditional UDS data is reported in aggregate, UDS+ will require some de-identified patient-level data.

Most practices collect their aggregate UDS data with the help of health information technology vendors, but submit it manually. The patient-level data of UDS+ is intended to be collected and submitted automatically through a practice’s EHR.

In that way, the government can examine more detailed information without practices performing any additional work aside from setting up an automation.

Healthcare Equity

Traditional healthcare has focused almost exclusively on improving people’s health through clinical care and encouraging healthy behaviors.

This approach ignores how a person’s health is impacted by social, economic, and environmental elements — factors research from Cigna Healthcare indicates impact health just as much as clinical care and healthy habits.

After the COVID-19 pandemic starkly demonstrated how closely socioeconomics is tied to healthcare outcomes, improving healthcare equity became a top priority. Expect to see government reporting systems emphasize equity and access data for the foreseeable future.

AI in Healthcare

Artificial intelligence is helping practices operate more effectively, from billing systems that prefill claims to EHRs that offer providers more patient face time.

AI’s predictive analysis capabilities will be of special value to public health agencies in the coming years. Already, AI is improving providers’ ability to predict patient outcomes and choose the right treatment.

AI evaluating the kind of de-identified patient-level data that will be collected by UDS+ may provide similar benefits on a national scale. Such technology could help the healthcare system prepare for viral outbreaks, identify trends in population health, and brainstorm interventions to help at-risk groups experience better patient outcomes.

Get the Right Tools to Streamline Reporting

Whatever changes may be on the horizon for healthcare, do not expect to see a decrease in reporting anytime soon. As the government strives to improve access and wrestle with healthcare costs, it’s likely to want more data, not less.

Fortunately, the technology exists to allow busy healthcare practices to keep up with requirements. A powerful, specialty-specific technology platform with EHR andintegrated practice management and payments solutions, streamlines all of a practice’s workflows, from data collection to patient engagement.

Nextech was developed with input from practicing clinicians. Our intuitive, automated tools are designed to make every part of your practice run faster, smoother, and more efficiently. Schedule a demo today to see what we could do for you.