New funding gives states and innovators tools and flexibility to implement delivery system reform

The State Innovation Model initiative may be a facilitator for States to investigate new reimbursement mechanisms that not only pay for quality but also address the issue of supply and demand, as is considered in the patented methodology presented by Supply Efficiency Scoringsm.


Here is the text of the CMS press release:
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Today, Department of Health and Human Services announced new delivery system reform efforts made possible by the Affordable Care Act that offer states and innovators tools and flexibility to transform health care.

Under the Health Care Innovation Awards program, twelve prospective recipients may receive as much as $110 million in combined funding, ranging from an expected $2 million to $18 million over a three-year period, to test innovative models designed to deliver better care outcomes and lower costs. Examples include projects to provide better care for dementia patients, improve coordination between specialists and primary care physicians, and to improve cardiac care. 

Round two of the Health Care Innovation Awards program focuses on four priority areas: rapidly reducing costs for patients with Medicare and Medicaid; improving care for populations with specialized needs; testing improved financial and clinical models for specific types of providers, including specialists; and linking clinical care delivery to preventive and population health. The twelve prospective recipients will test models in all four categories and spanning 13 states. Additional prospective recipients will be announced in the coming months.

Also today, HHS announced up to $730 million in available funding as part of the State Innovation Model initiative to help states design and test improvements to their public and private health care payment and delivery systems. Project goals are to improve health, improve care, and decrease costs for consumers, including Medicare, Medicaid, and Children's Health Insurance Program (CHIP) beneficiaries. 

The twelve innovative projects announced today represent the first batch of prospective recipients for round two of Health Care Innovation Awards program funding. In 2012, 107 organizations located in urban and rural areas, all 50 states, the District of Columbia and Puerto Rico received awards through round one of the initiative.   

As part of the State Innovation Model initiative, states, territories and the District of Columbia can apply for either a Model Test award to assist in implementation or a Model Design award to develop or enhance a comprehensive State Health Care Innovation Plan. Up to 12 states will be chosen for state sponsored Model Testing awards ($700 million available) and up to 15 states will be chosen for state-sponsored Model Design work ($30 million available).

For more information about the Health Care Innovation Awards program prospective recipients announced today, go to: innovation.cms.gov/initiatives/Health-Care-Innovation-Awards/Round-2.

Currently, there 25 states are participating in the State Innovation Models initiative. For more information on the initiative, including the Funding Opportunity Announcement, please visit: innovation.cms.gov/initiatives/state-innovations.

To learn more about other innovative models being tested by the CMS Innovation Center, please visit: innovation.cms.gov.

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Click here to see which states are currently participating in the program and at what stage.  I believe significant opportunity exists to impact the growth of health care costs without suppressing care delivery or outcomes.