“The CMS is ending a funding stream that states relied on to transform their healthcare systems to provide more efficient patient care, saying it’s unclear that the program is a good investment…”
“Over the years, states have received billions of dollars through the Designated State Health Programs, or DSHP, which can be used to finance delivery system reform…But the CMS said Friday that it will not renew DSHP portions of Medicaid waivers when they expire, and new requests for DSHP money will be denied.”
“DSHP funds were always supposed to be a temporary solution to help drive delivery system reform. However, states have viewed the federal dollars as a source of additional revenue… results in increased federal expenditures without a comparable increase in the state’s investment in its demonstration…”
“The Medicaid and CHIP Payment and Access Commission has noted a similar sentiment when it evaluated delivery reform experiments around the country…”
Source: CMS cuts off funding stream for healthcare transformation experiments – By Virgil Dickson, December 18, 2017, Modern Healthcare. Read more here.