NYS Department of Health Announces Release of DSRIP Waiver Extension for Public Comment

Waiver Amendment to Further Support Cost Savings and Quality Improvements through the Delivery Reform Incentive Payment (DSRIP) Program

Comprehensive Reform to Pave the Way for $8 Billion Investment in Health System Transformation for Additional 4 Years

ALBANY, NY (September 17, 2019) - The New York State Department of Health today announced that it has released for public comment a proposal to extend New York's Medicaid Delivery System Reform Incentive Payment (DSRIP) waiver for an additional period of four years and seek an additional $8 billion in federal funding for continued support of health care transformation in the state. Public comments are due by November 4, 2019, prior to the Department's submission of a formal waiver extension request to the Centers for Medicare and Medicaid Services (CMS) in November of this year.

"Transforming Medicaid to improve health outcomes and make it more cost-effective has been a priority in New York State under Governor Cuomo's leadership,"said New York State Department of Health Commissioner Dr. Howard Zucker."Extending our Delivery System Reform Incentive Payment waiver is vital to building upon our success."

Approved in April 2014, the DSRIP waiver permitted New York State to reinvest $8 billion of savings achieved through Governor Cuomo's Medicaid Redesign Team (MRT) in critical initiatives to transform the state's health care delivery system. The current waiver expires on March 31, 2020. The DSRIP program funds 25 Performing Provider Systems (PPS) throughout the state that work in local communities with the goal of reducing avoidable hospitalizations. As of June 30, 2018, DSRIP has already reduced preventable hospital admissions by 21 percent and preventable hospital readmissions by 17 percent, which has resulted in care improvements in other critical areas such as behavioral health.

The waiver extension seeks additional time and funding support for these successful initiatives to fully mature across the state and to complete the transformation of the way Medicaid pays for services – from fee for service which rewards volume, to a value-based system where care is funded based on outcomes. New York has already transitioned over 60 percent of Medicaid managed care expenditures to value-based payment exceeding the current waiver's goals.

While continuing its emphasis on DSRIP practices that have proven successful, the waiver extension also seeks support of new critical initiatives that are aligned with state and federal priorities including: caring for populations with substance abuse disorder and serious behavioral health diagnoses, high-risk children, persons in need of long-term care services and addressing disparities in maternal mortality, a priority of Governor Cuomo's administration.

The waiver extension will also seek additional funds to:

  • ~ aid financially distressed hospitals as they continue to make the transition to primary and ambulatory care;
  • ~ support workforce investments critical to the success of DSRIP efforts;
  • ~ and support referral networks to address social determinants of health such as assistance with housing and food security which are critical to an individual's overall health.

    • The DSRIP waiver extension can be found here https://www.health.ny.gov/health_care/medicaid/redesign/waiver_amendment_update.htm.

    Click here for more information about DSRIP promising practices and results.