Medicaid Innovation: Delivery System Reform Incentive Pools

Through Medicaid-led initiatives, federal grants and programs, and multi-payer efforts, Medicaid directors are actively engaged in efforts to improve quality, contain costs and increase the value of the Medicaid investment. One tool for system reform is the Delivery System Reform Incentive Pool (DSRIP). In DSRIP, states procure a Section 1115 waiver that allows the state to reward providers for implementing successful delivery system and payment reform projects. This is a hospital-based effort and is financed by redirecting supplemental payments that have traditionally only been available to hospitals for the provision of uncompensated care. This issue brief provides an overview of DSRIP and the seven existing state DSRIPs to date.

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