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Medicare & Medicaid News

New Health Care Innovation Awards Announced for Better Health Care, Lower Costs

Centers for Medicare & Medicaid Innovation Center to invest $360 million

July 10, 2014 – Health Care Innovation Awards expected to total as much as $360 million to deliver better health care at lower costs were announced yesterday by Health and Human Services Secretary Sylvia Mathews Burwell. Seven awards from the Centers of Medicare and Medicaid Services’ Innovation Center will focus on improving care for frail elderly patients or providing support for aging in the community and most of the other endeavors will also benefit seniors.

The models to test innovative care will include 39 recipients representing 27 states and the District of Columbia.

“The Health Care Innovation Awards support our ongoing work to drive down health care costs while providing high quality care to CMS beneficiaries,” said Secretary Burwell. “These awards advance innovative solutions in delivering and improving care from all across our nation.”

Although the award amounts are not yet final, they are expected to range from $2 million to $23.8 million over a three year period. These awards are made possible by the Affordable Care Act and round out the anticipated recipients for round two of the Health Care Innovation Awards program.

 

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New Round of Health Care Innovation Awards Follows Year of Slower Growth in Medicare Costs

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Examples include projects to promote better care for persons living with HIV/AIDS, reduce unnecessary use of emergency departments, improve pediatric dental care, promote prevention and management of cardiovascular disorders, and to improve care coordination in rural areas of the country.

Earlier this year, HHS announced 12 prospective round two recipients receiving as much as $110 million in combined funding and testing models in 13 states. Prospective recipients will receive their final Notice of Award later this summer.

Prospective recipients in round two of the Health Care Innovation Awards will be testing models in the following areas, but not limited to:

   • Five prospective awards will focus on improving emergency care;

   • Ten prospective awards will focus on improving care for children;

   • Four prospective awards will focus on promoting prevention and improving management of cardiovascular diseases;

   • Seven prospective awards will focus on promoting better rural care coordination and telehealth;

   • Seven prospective awards will focus on improving care for frail elderly patients or providing support for aging in the community; and

   • Two prospective awards will focus on promoting better care for persons living with HIV/AIDs.     

In 2012, 107 organizations located in urban and rural areas, all 50 states, the District of Columbia and Puerto Rico, received awards through round one of the initiative.

The second round of Health Care Innovation Awards differs from the first round in that CMS specifically sought innovations in four areas:
   1. rapidly reducing costs for patients in outpatient hospital and post-acute settings;
   2. improving care for populations with specialized needs;
   3. testing improved financial and clinical models for specific types of providers; and

   4. linking clinical care delivery to preventive and population health.

“We are pleased to announce the remaining prospective recipients for round two of the Health Care Innovation Awards today,” said Marilyn Tavenner, CMS administrator.

“Over the last three years, we have embarked on an historic effort to improve the delivery of healthcare by testing new models of paying for quality care; and these awards will help spur private and public sector innovation in this endeavor.”

For more information about the Health Care Innovation Awards program prospective recipients should, go to: http://innovation.cms.gov/initiatives/Health-Care-Innovation-Awards/Round-2.html.

To learn more about other innovative models being tested by the CMS Innovation Center, please visit: innovation.cms.gov. You are also invited to contribute your ideas.

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