Nysha Recent News

Savings from Gov.’s Medicaid Redesign Enter 3rd Year of Reinvesting in More Savings

April 5, 2017            

By Mendy Hecht, Hamaspik Gazette

DSRIP Program’s April 2014 Goal: Cut Avoidable Hospital Use by 25% Over 5 Years

For New York, arguably the birthplace of Social Security and Medicaid, April 1, 2017 marked another milestone in the state’s national leadership in social justice: Year 3 for DSRIP.

Gov. Andrew Cuomo’s 2011 Medicaid Redesign Team (MRT) produced $17 billion in savings.  An agreement finalized with the federal government in April 2014 allowed New York State to use $8 of that $17 billion on a new program to cut even more state Medicaid costs. 

That new program is the Delivery System Reform Incentive Payment, or DSRIP. 

Launched in April 2014, the DSRIP program is working towards getting New York hospitals to cut avoidable hospital use by Medicaid patients by 25 percent by April of 2019.

Under the leadership of New York State Medicaid Director Jason Helgerson, DSRIP recruited 25 Performing Provider Systems (PPS)—new groups of hospitals, facilities and professionals.

Each new participating PPS had to demonstrate innovative and effective ways of reducing usage of hospitals by members of Medicaid, the state/federal healthcare plan for the poor.

New York’s Medicaid program remains the state’s costliest single expense, a taxpayer burden that Gov. Cuomo sought to reduce with his MRT initiative without hurting quality or accessibility of care for the state’s most vulnerable.

 “There has been great work done so far by all 25 Performing Provider Systems, but there is still more to do in order to achieve DSRIP goals,” wrote Mr. Helgerson in a public letter this April 4.  “The year ahead is an extremely important one for PPS, as DSRIP is now shifting from pay for reporting to performance accountability,” a reference to a key DSRIP cost-saving measure.

“We are optimistic that we will successfully transform the state's health care system, bend the Medicaid cost curve,” Helgerson concluded, “and ensure access to quality care for all Medicaid members.”

So far, so good.