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    1115 Healthcare Transformation Waiver Program

    1115 Healthcare Transformation Waiver Program


    Texas: In December 2011, Texas received federal approval of an 1115 Healthcare Transformation Waiver which will fund two statewide pools now worth $29 billion (all funds) over five years. Funding from the pools will be distributed to hospitals and other providers (Public Health) to support the following objectives: (1) an uncompensated care (UC) pool to reimburse for uncompensated care costs (hospitals); and (2) a Delivery System Reform Incentive Payment (DSRIP) pool to incentivize hospitals and other providers (Public Health) to transform their service delivery practices to improve quality, health status, patient experience, coordination, and cost-effectiveness.



    Tarrant County Public Health: The purpose of the DSRIP program is to incentivize improvements in care delivery and health outcomes, while changing the paradigm with relation to alignment of financial incentives. It promotes the development of population health-focused integrated systems of care. It does this by providing incentives for providers (Public Health) after they have demonstrated measurable improvements in care. The program is based on the “Triple Aim” of better care that improves population health at a lower cost.



    Projects: The DSRIP program explicitly links payments with measurable outcomes, building upon recent federally incentivized care transformation models. DSRIP incentive payments are made for: (1) each region’s identification and design of projects that transform the region’s delivery systems based on community need; and (2) a provider’s achievement of the milestones and outcomes specified in the provider’s projects plan (measurable process improvements and targeted health outcomes).