Funding to Transform NY's Health Care System Announced

By Joe Gullo

Published 04/14 2014 11:58AM

Updated 04/14 2014 12:04PM

ALBANY, N.Y. - New York Governor Andrew Cuomo announced funding to protect and transform the state's healthcare system. 

A press release says an $8 billion waiver from the federal government, generated through the Medicaid Redesign Team (MRT), will allow New York to transform the state's health system, bend the Medicaid cost curve, and ensure quality care for all Medicaid members.

“We will finally be able use the billions in savings we generated by reforming the state's Medicaid system to protect and improve health care services for millions of New Yorkers,” said Governor Cuomo. 

 The funding will allow the state to undergo comprehensive reform through a Delivery System Reform Incentive Payment (DSRIP) program. This program will allow community collaborations and focus on system reform, specifically to get a 25% reduction in avoidable hospital use in the next 5 years. The funding will also allow New York to manage its Medicaid program within the restrictions of the Medicaid Global Spending Cap.

A press release says the funding will be allocated in the following ways:
  • $500 Million for the Interim Access Assurance Fund – temporary, time limited funding to ensure current trusted and viable Medicaid safety net providers can fully participate in the DSRIP transformation without disruption
  • $6.42 Billion for Delivery System Reform Incentive Payments(DSRIP) – including DSRIP Planning Grants, DSRIP Provider Incentive Payments, and DSRIP Administrative costs
  • $1.08 Billion for other Medicaid Redesign purposes – this funding will support Health Home development, and investments in long term care, workforce and enhanced behavioral health services
Public comment on the funding will be conducted through the MRT website, webinars, and public hearings in the next couple of weeks.

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