Texas Health And Human Services Commission

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In December 2011, Texas Health and Human Services Commission (HHSC) received federal approval of a Medicaid Section 1115(a) Demonstration Waiver, entitled “Texas Healthcare Transformation and Quality Improvement Program,” for the period starting with December 12, 2011 through September 20, 2016. The main objective of the 1115 Waiver is to improve access to and quality of health care by expanding Medicaid managed care programs and promoting health care delivery system reforms while containing cost growth. Specifically, the Waiver created two new pools of funding—Uncompensated Care (UC) and Delivery System Redesign and Innovation Payment (DSRIP) pools—by redirecting funds that were available under the old Upper Payment Limit (UPL) payment methodology. DSRIP funding is used to offer financial incentives to health care providers that develop and implement projects aimed at improving how care is delivered to low-income populations. Specifically, the providers (often referred to as the “performing providers” or “performers”) propose and execute projects like programs, strategies, and investments designed to enhance access to health care, quality of health care, cost-effectiveness of services, and health of the patients and families served. Based on the completion of their project milestones, they receive DSRIP payments. Milestones are objectives of the projects, comprised of metrics indicating their progress, and the providers must achieve the milestones in order to claim the associated incentive funds. DSRIP projects are spanned over five demonstration years, DY1 through DY5. And each demonstration year has separate project milestones, metrics, and incentive funds. If providers fail to fulfill certain milestones, the fund... ... middle of paper ... ...h outcome domain, and the providers choose the ones they want to focus on that will best reflect the success of their projects. For each of these DSRIP activities, providers must also select suitable milestone and metric options from the DSRIP menu. In addition to receiving payments for completing milestones associated with Category 1 and 2 projects, providers receive separate incentive payments for completing milestones associated with Category 3. Category 4 requires all hospital-based providers to use the same reporting measures. For example, providers must report data related to potentially preventable admissions, readmissions and complications, patient-centered health care and emergency department utilization. Hospitals that are exempt from the Category 4 requirements pursuant to PFM Protocol Sections 11.e. and 11.f do not have to report on these measures.

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