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Delivery System Reform Incentive Payment (DSRIP) Programs

Delivery System Reform Incentive Payment (DSRIP) programs are a new type of supplemental payment that provide incentive payments for hospitals and other providers to undertake delivery system transformation efforts. Currently operating in California, Texas, Massachusetts, Kansas, New Jersey, and New York, DSRIP projects are led by hospitals, but often involve collaborations with non-hospital providers. They generally fall into two categories—infrastructure development and care innovation and redesign. Payments are tied to corresponding improvements in health outcomes for Medicaid enrollees and the uninsured.

The presentation offers an overview of DSRIP, including features of DSRIP programs in each of the six states, and raises policy issues for future consideration, including whether DSRIPs are an improvement on Medicaid supplemental payment policy; Medicaid’s role in supporting delivery system transformation; and the appropriate role for federal and state governments supporting these policies.