PT: NYS DSRIP Spending Lags Behind Original Projections

PoliticoNY’s health reporter Dan Goldberg writes this morning that the New York’s DSRIP (Delivery System Reform Incentive Payment) program hasn’t been spending funds as fast as had been originally planned.

He found that 6 of the 25 Performing Providers Systems (PPSs) spent less than 10 percent, suggesting 3 likely causes:

  • new money for capital projects was awarded later than expected, in March of this year although the funds were budgeted back to 2015.
  • more time was needed for PPSs to contract with network providers and reach agreements with health plans on how to spend additional ‘equity’ funds
  • lots of time has been needed by the state to identify the most costly individuals and their doctors, data that the state is saying is ‘on the way’.

PPSs have used first year DSRIP funds to build up staff and space, purchase HIT systems and for network development with primarily medical practices and facilities. They will then be spending the remaining 4 years of DSRIP program funds in providing services that will deliver improved health outcomes and Medicaid spending reductions.

While community based organizations like behavioral health nonprofits agencies will need to play a prominent role within the new networks to achieve these aims, very few have received contracts or funding from the multibillion dollar program.

Advocates have been raising these concerns. NYAPRS has asked Medicaid Director Jason Helgerson to monitor and report on the number and nature of PPS contracts with the CBOs and he has agreed to do so.