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Michigan Receives $1.6 Million to Transform Healthcare Delivery and Payment Systems

Contact: Angela Minicuci (517) 241-2112


FOR IMMEDIATE RELEASE: March 12, 2013

LANSING - The Center for Medicare and Medicaid Innovation (Innovation Center) within the Centers for Medicare and Medicaid Services (CMS) recently announced Michigan as one the grantees for the State Innovation Models initiative. Beginning Apr. 1, Michigan will receive about $1.6 million to develop its State Health Care Innovation Plan.

"Being named one of the states to receive this award is a huge step forward as we work to reinvent our healthcare system, one of the top priorities Governor Snyder has set for Michigan," said James K. Haveman, Director of the Michigan Department of Community Health (MDCH). "With this grant, we have an opportunity to make some groundbreaking changes in our state. By focusing on transforming our healthcare system, we will be able to provide better coordinated services and payments, and ultimately, better quality care for Michigan residents."

The State Innovation Models Initiative is providing nearly $300 million nationally to support the development and testing of state-based models for multi-payer payment and health care delivery system transformation, with the aim of improving health system performance for residents of participating states and reduced costs. The projects will be broad based and focus on people enrolled in Medicare, Medicaid and the Children's Health Insurance Program.

The Innovation Center announced the awards in three parts: six states received Model Testing awards, three received Model Pre-Testing awards, and 16 received Model Design awards. Michigan is one of the 16 that received a Model Design Award. These states have to produce a State Health Care Innovation Plan within six months to submit to CMS. These Health Care Innovation Plans will be used to apply for an anticipated second round of Model Testing awards.

Michigan's proposed design process will focus on transforming service delivery and payment models in four foundational areas: patient/family-centered health homes; coordination and accountability of the medical neighborhood; a care-bridge to behavioral health and long-term care; and integration between and among healthcare and community resources, including the Pathways Community Hub model. The state will work to align the program and outcome metrics across payers, prioritize investments in health information exchange and data analytic capacity, incorporate commitment to population health in line with the National Quality Strategy, and identify steps to support future implementation.

After the grant period begins, Michigan will have six months to create their state health innovation plan. MDCH has convened an advisory committee representing a broad group of stakeholders, and will soon establish several work groups to focus on the issues that will be central to the plan, and hold regional forums to seek input as part of the planning process.

For more information about the State Innovation Models initiative, visit www.innovation.cms.gov. For more information about the award that Michigan received, visit www.innovation.cms.gov/initiatives/State-Innovations/index.html.

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