December 2011

New CMS Program Promises Funding For Providers’ Innovative Care Delivery Models

A Polsinelli Shughart Update

The Centers for Medicare and Medicaid Services (CMS) announced on November 14, 2011, a new initiative aimed at funding innovative care delivery models created by providers. The CMS Center for Medicare Medicaid Innovation (the Innovation Center) announced the Health Care Innovation Challenge, which is a Funding Opportunity for compelling new models of delivery and payment that hold the promise of better health, better health care and lower costs for Medicare, Medicaid and the Children's Health Insurance Program. The Innovation Center has budgeted up to $1 billion to fund projects throughout the country, and expects to make awards ranging from $1 million to $30 million for a three-year performance period.

The Health Care Innovation Challenge will fund applicants who propose new service and delivery models and new payment models that “will drive system transformation” and result in better outcomes for Medicare, Medicaid and CHIP beneficiaries. CMS’ solicitation notes that the funding opportunity is not intended to be a “prescriptive solution” but instead represents “an open invitation to applicants” for funding and support for projects that meet the following criteria:

• Identify and test new care delivery and payment models that originate in the field and that produce better care, better health, and reduced cost
• Identify new models of workforce development and deployment and related training and education that support new models either directly or through new infrastructure activities
• Support innovators who can rapidly deploy care improvement models (within six months of award) through new ventures or expansion of existing efforts to new populations of patients, in conjunction (where possible) with other public and private sector partners

What You Should Do Now

Providers should:

• Review their internal programs for new models for care delivery to determine if they might qualify for consideration.
• If a provider identifies an innovative program that they think may qualify for funding, a non-binding Letter of Intent to Apply is due by December 19 and all applications for the first round of awards must be submitted by January 27, 2012.

For a complete rundown on eligibility, the application process, requirements and key deadlines, click here.

For More Information

If you have questions about the Health Care Innovation Challenge, please contact:

• Alan K. Parver | 202.626.8306 | aparver@polsinelli.com
• Randal L. Schultz | 816.374.0521 | rschultz@polsinelli.com

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