America’s Essential Hospitals released a policy brief that discusses approaches to extending the reach of health care transformation through Medicaid incentive programs. These programs enable states to use Medicaid dollars in a budget-neutral way through Section 1115 Medicaid waivers to incentivize long-term changes in care delivery. Participating providers are only paid if they successfully achieve predetermined program milestones that are tied to real changes in health care delivery. These incentive programs, or delivery system reform incentive programs (DSRIPs), have been approved for seven states, with additional states developing proposals. Early reports show promise for these programs, with providers from California, the earliest DSRIP state, already showing expanded care capacity, use of disease management registry, and enhanced reporting capacity.
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