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HHS Awards Delivery System Reform Funding

The U.S. Department of Health and Human Services (HHS) announced May 22 the first batch of round two recipients of the Health Care Innovation Awards and a call for applications for round two of the State Innovation Models Initiative. These programs were created through the Affordable Care Act to give stakeholders and states tools and flexibility to transform health care delivery systems.

The Centers for Medicare & Medicaid Services (CMS) Innovation Center announced 12 Health Care Innovation Award recipients, including two members of America’s Essential Hospitals – New York City Health and Hospitals Corporation and the Regents of the University of California San Francisco. Awards range from $2 million to $18 million over three years for recipients to implement plans that would improve care and reduce cost for people enrolled in Medicare, Medicaid, and the Children’s Health Insurance Program. A second batch of round two awardees will be announced in the coming weeks.

The CMS Innovation Center also announced a second round of funding, up to $730 million, through the State Innovation Models Initiative. This funding will help states design and implement health care innovation plans, intended to improve public and private health care payment and delivery systems through multipayer payment reform and state-led initiatives. Up to 15 states will be awarded funding from the $30 million designated for plan design, and up to 12 states will be awarded funding from the $700 million designated for plan testing. States that have not yet participated in the initiative or those that received design awards in round 1 but require additional work to implement the plan can apply for design or testing funds in round 2. However, states that received testing awards in round 1 are ineligible for round 2 funding. States must submit a letter of intent by June 6 and a full application by July 21. Awards will be announced in the fall.

Please contact Xiaoyi Huang, JD, director of policy, at or 202.585.0127 with questions.


About the Author

Matt Buechner is the policy and advocacy associate for America's Essential Hospitals.

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