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Tuesday, November 26, 2019

The State of New York is seeking a four-year extension/renewal of its Delivery System Reform Incentive Payment (DSRIP) program from the Centers for Medicare and Medicaid Services (CMS) as of September 17, 2019, hoping to build upon the success of DSRIP 1.0.

The goal? To gain more time—and money—for value-based payment (VBP) arrangements to mature, incorporate additional initiatives that are aligned with Federal and State goals, and further engage providers in DSRIP efforts. NY would not be the first state to receive waiver extensions, as both Texas and California have received additional funding to build upon previous waivers.

In an era of unprecedented transformation and complexity, healthcare providers are getting squeezed. Healthcare organizations are being called on to do more for less, and to achieve better health outcomes while grappling with a realignment of finance, capital and clinical delivery activities.

As we approach the end of DY5, the question of whether the State will deliver the $8 billion program extension is producing a lot of uncertainty for effected providers, while generating tangible excitement within New York State’s health care delivery system.

The questions remain: In what form will these programs be allowed to continue, and will the result be more tangible impacts on statewide Medicaid spending? Even with the introduction of Medicaid focused reform, per-recipient Medicaid costs continue to grow at a rate greater than inflation and create continued budget pressures. Could this extension be one solution? READ MORE