Tennessee will use federal funding to experiment with LTSS

Tennessee will receive up to $65 million over the next two years to implement and test its State Health Care Innovation Plan, including the provision of long-term services and supports (LTSS). The funding, part of more than $622 million in State Innovation Model Test Awards announced yesterday by U.S. Department of Health and Human Services Secretary Sylvia M. Burwell, is available through the Affordable Care Act, which has a goal of helping states develop and test healthcare payment and service delivery models to improve healthcare quality and lower costs.

“States are laboratories of innovation and serve as critical partners in transforming healthcare,” Patrick Conway, MD, CMS deputy administrator for innovation and quality and chief medical officer, said in a statement. “States are large healthcare purchasers for their employees and residents, have broad regulatory authority over healthcare providers and payers, have the ability to convene multiple parties to improve statewide health delivery systems, and oversee public health, social and educational services. Partnering with states on health innovation has the potential to accelerate and transform health innovation in all of these areas.”

Tennessee will use the funds to execute multi-payer payment and delivery reform strategies:

  • For LTSS delivery, the state will implement quality and acuity-based payment and delivery system reform, targeting nursing facility services and home- and community-based services for seniors and adults with physical, intellectual or developmental disabilities.
  • New pediatric and adult patient-centered medical homes health homes will integrate value-based behavioral and primary care services for people with severe and persistent mental illness.
  • 75 episodes of care will be implemented over the test period.
  • The state will create a statewide plan for improving population health, to address disparities and state-specific population health needs.

Other states sharing the more than $622 million in State Innovation Model Test Awards include Colorado, Connecticut, Delaware, Idaho, Iowa, Michigan, New York, Ohio, Rhode Island and Washington. These states join six previous round one Model Test awardees: Arkansas, Maine, Massachusetts, Minnesota, Oregon and Vermont.

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Topics: Executive Leadership , Medicare/Medicaid