Delivery system reform incentive payment
What are delivery system reform incentive payments?
Delivery system reform incentive payments are made to develop programs or strategies that enhance healthcare access, improve the quality and cost-effectiveness of care, and increase the number of patients served. While hospitals often lead delivery system reform incentive payment projects, they usually involve collaborations with non-hospital providers as well.
There are generally two categories for projects with delivery system reform incentive payment:
- Infrastructure development
- Care innovation and redesign
Delivery system reform incentive payments are tied to corresponding health outcome improvements for Medicaid or uninsured patients. As such, states must be able to demonstrate the outcomes resulting from the spending to remain accountable for the allocated funding.
How do delivery system reform incentive payments improve healthcare?
Delivery system reform incentive payments are designed to create better care for patients (by improving quality of care, access to care, and health outcomes) and lower healthcare costs by making it so that hospital funding is contingent on achieving health improvement goals. Hospitals can receive incentive payments through this program for implementing quality initiatives and achieving measurable clinical outcomes that show the initiative’s impact on the healthcare system.