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 and innovative health care delivery systems, including accountable care organizations.

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

With this demonstration, Minnesota is one of a growing number of states to implement an Accountable Care Organization (ACO) model in its Medical Assistance (Medicaid) program, with the goal of improving care for enrollees. 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 enrollees in Medical Assistance are measured against targets for cost and quality.

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

7. Hennepin Healthcare System (Hennepin County Medical Center Hospital and Clinics)

8. Mayo Clinic

9. Southern Prairie Community Care

Combined, these nine providers deliver better care at a lower cost to 145,000 Minnesotans enrolled in Medical Assistance.

2014 Request for proposals (RFP) Revised March 12, 2014 (PDF)

RFP Q&A, March 24, 2014

RFP Q&A, May 12, 2014

Additional Resources

Paying for Value in Medicaid, SHADAC report, February 2014

Model Summary, January 2013 (PDF)

Quality measures and methodology overview, 2012 (PDF)

Quality measures preliminary thresholds for performance year 2014, December 2013

Legal References

MS 256B.0755 Health Care Delivery Systems Demonstration

MS 62U.02 Payment Restructuring; Quality Incentive Payments

MS 62U.04 Payment Reform; health care Costs; Quality Outcomes

MS 62U.05 Coordination; Legislative Oversight

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