Integrated Health Partnerships (IHP) Overview

In 2008, Minnesota passed health care legislation to improve affordability, expand coverage and improve the overall health of Minnesotans. In addition, the 2010 Legislature mandated that the Minnesota Department of Human Services (DHS) develop and implement a demonstration testing alternative health care delivery systems, which includes accountable care organizations (ACOs).

This led to the development of the Integrated Health Partnerships (IHP) demonstration, formerly called the Health Care Delivery Systems (HCDS) demonstration, which strives to deliver higher quality and lower cost health care through innovative approaches to care and payment.

With this demonstration, Minnesota is one of a growing number of states to implement an ACO model in its Medical Assistance (Medicaid) program, with the goal of improving the health of the population and of individual members. In their first year of participation, delivery systems can share in savings. After the first year, they also share the risk for losses. Delivery systems’ total costs for caring for Medical Assistance members are measured against targets for cost and quality.

Participation in IHP

Over the past five years, DHS has contracted with innovative health care delivery systems to provide high-quality, efficient care to Minnesota’s Medicaid population. Participating providers enter into an arrangement with DHS, by which they are held accountable for the costs and quality of care their Medicaid patients receive. Providers showing an overall savings across their population, while maintaining or improving the quality of care, receive a portion of the savings. Providers who cost more over time may be required to pay back a portion of the losses.

Demonstration Participants

Delivery systems that began participating on January 1, 2013

  • 1. Children’s Hospitals and Clinics of Minnesota
  • 2. CentraCare Health System
  • 3. Essentia Health
  • 4. Federally Qualified Health Center Urban Health Network (FUHN)
  • 5. North Memorial Health Care
  • 6. Northwest Metro Alliance (a partnership between Allina Health and HealthPartners)

  • Delivery systems that began participating in 2014

  • 1. Hennepin Healthcare System (Hennepin County Medical Center Hospital and Clinics)
  • 2. Mayo Clinic
  • 3. Southern Prairie Community Care

  • Delivery systems that began participating in 2015

  • 1. Bluestone Physician Services
  • 2. Lake Region Healthcare
  • 3. Lakewood Health Systems
  • 4. Mankato Clinic
  • 5. Wilderness Health
  • 6. Winona Health
  • 7. Courage Kenny Rehabilitation Institute, part of Allina Health

  • Delivery systems that began participating in 2016

  • 1. Allina Health System
  • 2. Gillette Children’s Specialty Healthcare
  • 3. Integrity Health Network

  • Delivery systems that began participating in 2017

  • 1. Fairview Physician Associates Network (FPA Network)
  • 2. Community Healthcare Network

  • Combined, these 21 providers deliver better health care at a lower cost to more than 465,000 Minnesotans enrolled in Medical Assistance.

    IHP 2017 Request for Proposals (RFP)

    Beginning in 2018, DHS will be expanding and enhancing this model in several important ways. We will introduce multiple tracks to accommodate a diverse set of provider systems, add a quarterly population-based payment to support care coordination and infrastructure needs and modify the quality measurements methodology. We encourage current IHP participants, health care homes, and other innovative provider systems to apply.

    For more information, see the 2017 IHP RFP web page or find the 2017 Integrated Health Partnerships (IHP) Request for Proposals (RFP) on the DHS Grants and RFPs website.

    IHP Request for Information

    In April 2016, DHS published a Request for Information (RFI) to request comments on enhancements to the IHP program. DHS received 27 responses from the organizations listed below. See IHP RFI Summary and Highlights (DHS-3780) (PDF) for a summary of responses. Individual responses are available upon request to Mat Spaan at

    Allina Health

    Altair ACO - Disability Services

    Blue Cross Blue Shield Minnesota

    Bluestone Physician Services

    ClearWay Minnesota

    FUHN (FQHC Urban Health Network)

    Gillette Children's Specialty Healthcare


    Hennepin County Medical Center & Hennepin County

    Lakewood Health System

    Mayo Clinic



    Minnesota Community Healthcare Network

    Minnesota Council of Health Plans

    Minnesota Hospital Association

    MN Health Care Safety Net Coalition

    MNACHC (Minnesota Association of Community Health Centers)

    Northwest Metro Alliance

    People Incorporated

    Planned Parenthood (MN, ND, SD)

    PrimeWest Health

    South Lake Pediatrics

    Southern Prairie Community Care

    TakeAction Minnesota


    Zumbro Valley Health Center

    Additional Resources

    Paying for Value in Medicaid, SHADAC Report, February 2014 (PDF)
    Model Summary, January 2013 (PDF)

    Quality Measures and Methodology Overview, 2014 (PDF)

    Quality and Patient Experience Measures Preliminary Threshold Distributions (DHS-7426) (PDF)

    Legal References

    Minnesota Statutes, section 256B.0755, Health Care Delivery Systems Demonstration Project
    Minnesota Statutes, section 62U.02, Payment Restructuring; Quality Incentive Payments

    Minnesota Statutes, section 62U.04, Payment Reform; Health Care Costs; Quality Outcomes

    Minnesota Statutes, section 62U.06, Coordination; Legislative Oversight

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