New York State’s Delivery System Reform Incentive Payment (DSRIP) program is the vehicle by which the state aims to transform the delivery of health care, with specific attention paid to Medicaid and uninsured patients. The DSRIP program also seeks to achieve a 25% reduction in unnecessary hospitalizations and emergency department visits over a five year period.

The funding for the DSRIP program was made possible through a waiver between the federal government and New York State. As a performance driven plan, DSRIP incentivizes each of the state’s 25 Performing Provider Systems (PPSs) to work collaboratively to reduce hospitalizations and emergency department visits that are considered avoidable, increase quality of care and slow the cost curve.

Alliance for Better Health is one of New York’s approved PPSs and must meet NYS Department of Health requirements, milestones, benchmarks and metrics for each of the DSRIP projects, in order to receive the full funding amount in each semi-annual performance period.  The Alliance has the potential to earn up to $237 million over the five year DSRIP period, and an additional $13 million could be made available as part of certain state high performance pools. The valuations of the PPSs total $7.3 billion and were announced by Governor Andrew Cuomo in a June 29, 2015 press release.

The Governor’s release also noted that New York State’s Medicaid spending per person had decreased to a 13 year low over the last twelve months. The Governor’s Medicaid Redesign Team was initiated in 2011 and, according to the state, has saved taxpayers billions of dollars which are now being reinvested into the state’s health care system.

Learn more about DSRIP through the New York State Department of Health’s FAQ document.