HHS Awards More Than $665 Million In Innovation Grants

By Christine Kern, contributing writer

Awards go to groups designing and testing healthcare payment and service delivery models.

Health and Human Services Secretary Sylvia M. Burwell announced the awarding of more than $665 million in grants to design and test state-led efforts to improve health care quality, accessibility, and affordability. Twenty eight states, three territories, and the District of Columbia will receive over $665 million in Affordable Care Act funding to support the design and testing of health care payment and service delivery models to improve healthcare quality and lower costs.

The recent awards, paired with awards released in early 2013, mean that 34 states, three territories, and the District of Columbia – representing nearly two-thirds of the population – are currently engaging in efforts to support comprehensive state-based innovation in health system transformation to improve quality and lower costs.

The State Innovation Models initiative provides support for the planning or implementation of a customized, fully developed proposal that allows states to create statewide health transformation to improve healthcare. According to the press release, some sample initiatives include:

• Providing technical assistance and data to health care providers and payers that are working to advance models of integrated, team-based care, or transition to value-based payment models.
• Creating unified quality measure score cards that health care payers and providers can use to align quality improvement and value-based payment methodologies.
• Expanding the adoption of health information technology to improve patient care. 
• Fostering partnerships among public, behavioral, and primary health care providers.

“We are committed to partnering with states to advance the goals we all share: better care, smarter spending, and, ultimately, healthier people,” said Secretary Burwell. “We're seeing states do some very innovative things when it comes to improving the ways we deliver care, pay providers, and distribute information. These funds will support states in integrating and coordinating the many elements of health care – including Medicaid, Medicare, public health, and private health care delivery systems – to the benefit of patients, businesses, and taxpayers alike.”

“States are laboratories of innovation and serve as critical partners in transforming health care,” Patrick Conway, M.D., CMS deputy administrator for innovation and quality and chief medical officer said in the release. “States are large health care purchasers for their employees and residents, have broad regulatory authority over health care providers and payers, have the ability to convene multiple parties to improve statewide health delivery systems, and oversee public health, social, and educational services. Partnering with states on health innovation has the potential to accelerate and transform health innovation in all of these areas.”

The State Innovation Models initiative is just one part of an overall effort to help lower costs and improve care through the Affordable Care Act.