Brad Smith, who co-founded palliative care provider Aspire Health is the new director of the CMS' Center for Medicare and Medicaid Innovation.
The HHS announced Monday that Smith would be the new leader of the CMS' delivery model testing center, replacing Adam Boehler who left the role in the fall after roughly a year when he was nominated for another role in the Trump administration.
Rumors have swirled since September that Smith would be the new director of the center.
Smith will also be a senior advisor to HHS Secretary Alex Azar, according to the agency.
"Brad has impressive experience with innovative care delivery and paying for value, and he will help expand (CMS) Administrator (Seema) Verma's and CMS' efforts to ensure Medicare and Medicaid beneficiaries are getting better care, and better health, at a lower cost," Azar said in a statement.
He added that value-based healthcare is a key focus area for the Trump administration and the CMS Innovation Center is an important way to execute that goal.
Smith established Aspire Health in 2013 alongside former Republican Sen. Bill Frist of Tennessee. The company offers clinical services to patients in their home who are suffering from serious illnesses that have advanced.
Smith was most recently the chief operating officer of Anthem's diversified business group, according to the HHS.
Verma called Smith an "entrepreneur" who thinks "outside-the-box."
"I am excited that we have selected Brad to join the ranks of CMS and help us build on the important work the Trump administration has undertaken to transform our healthcare system to deliver better value to patients," she said.
CMMI, which was established under the Affordable Care Act, is where the CMS tests new payment delivery models. The center has been criticized for its track record. Of the 37 models the CMS Innovation Center had tested by March 2018, only two were recommended for expansion.
The Affordable Care Act set aside $10 billion for CMMI's activities for fiscal 2011 through 2019 and $10 billion per decade beginning in fiscal 2020.