NY’s Delivery Service Reform Incentive Payment Project (DSRIP)

Center for Healthcare Economics and Policy

May 11, 2015

New York’s Delivery Service Reform Incentive Payment Project (DSRIP) represents one of the nation’s most extensive efforts to both reform Medicaid and improve healthcare delivery. The primary goal of the project is to reduce unnecessary utilization by promoting the community-wide integration of healthcare provision.

DSRIP is a federally-funded, state-managed program to experiment with Medicaid delivery reform. Its overarching goals are to improve the health of Medicaid enrollees while reducing costs. In NY, this is accomplished by increasing care management and coordination throughout a local healthcare economy to reduce avoidable admissions by 25% over the next five years. CMS awarded the New York Department of Health (NYDOH) $8 billion as part of Medicaid Redesign Team Waiver Amendment, of which $6.42 billion will fund DSRIP initiatives.

The Center for Healthcare Economics and Policy within FTI Consulting assisted Niagara Falls Memorial Medical Center and the Millennium Performance Provider System in their DSRIP application and participated in the development of metrics, organization of local healthcare providers, assessment of community health, identification and selection of specific health initiatives, and determination of required resources. These components were core elements of the application the Millennium PPS submitted to the NYDOH.

NY DSRIP Organization

DSRIP implementation in NY is through individual Performing Provider Systems (PPSs)—which include both major public general hospitals and safety net providers that are responsible for performing DSRIP projects. The PPS is the primary driver of initiatives for Medicaid reform and improvement of health and service delivery in a region. The PPS is responsible for organizing all of the necessary participants and managing the program, selecting reform initiatives and the local health facilities, and ensuring that all participants meet their targets so that the state meets its overarching goals. The PPS provides the common framework for the region and is the liaison between the local healthcare economy and NYDOH.


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Key Contacts

Margaret E. Guerin-Calvert

Senior Managing Director – President, Center for Healthcare Economics and Policy

Susan H. Manning, Ph.D.

Senior Managing Director – Chief Operating Officer, Center for Healthcare Economics and Policy