Using Medicaid Supplemental Payments to Drive Delivery System Reform

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June 2015 | Provider Payment

DSRIPs are a new type of Medicaid supplemental payment approved under Section 1115 waiver authority that support provider-led efforts to change the delivery of care, improve quality of care, and promote population health.

A total of $3.6 billion in federal funds is available in fiscal year 2015 to implement DSRIP programs in California, Texas, Massachusetts, New Jersey, Kansas, and New York. The payments are tied to the achievement of specific planning, implementation, reporting, and health outcome milestones, and they have enabled providers to invest in a variety of infrastructure and care redesign projects.  Chapter 1 describes these programs, noting their potential to drive value and improved health outcomes in Medicaid, but also noting that the programs could benefit from more clarity and consistency in federal guidance as well as an examination of lessons learned across states to underpin future expansion.

Download the contractor report, State Experiences Designing and Implementing Medicaid Delivery System Reform Incentive Payment (DSRIP) Pools, here.

Publication Type: Reports to Congress

From: June 2015 Report to Congress on Medicaid and CHIP

Tags: capitation, delivery system reform, fee for service, financing, hospitals, managed care, oversight, payment, safety net providers, Section 1115 research and demonstration project waivers, spending, supplemental payments, value-based purchasing