The federal government announced more than $665 million in grants to 28 states, three territories and the District of Columbia on Tuesday to design and test new healthcare payment and delivery models.
The bulk of the money will go to 11 states, including Michigan, New York and Ohio to test statewide initiatives.
“This is a historic day for our health system,” said Dr. Patrick Conway, CMS deputy administrator for innovation and quality, on a call with reporters. “HHS is committed to partnering with states to advance the goals we all share: better care, smarter spending, and, ultimately, healthier people.”
Last year, HHS announced nearly $300 million in grants to 25 states to support state innovation models. Through the two rounds of funding, grants have now been awarded to jurisdictions where just over 60% of the country's population lives.
The grants are intended to bolster innovative payment and delivery systems, such as accountable care organizations and patient-centered medical homes and to augment the use of health information technology to improve care. The funds are available under the Patient Protection and Affordable Care Act.
The other states receiving money to test statewide initiatives are Colorado, Connecticut, Delaware, Idaho, Iowa, Rhode Island, Tennessee and Washington. Those grants range from $20 million to $100 million per state.
“CMS believes states are laboratories of innovation,” Conway said.
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