New York State Delivery System Reform Incentive Payment program

In 2011, New York Governor Andrew Cuomo signed an executive order that created a team (the Medicaid Redesign Team, or MRT) charged with finding ways to rein in the state’s Medicaid spending. The MRT developed sweeping recommendations designed to transform healthcare delivery in ways that better reflect community needs and improve the health of patient populations by emphasizing preventive, primary, ambulatory care rather than inpatient hospital care.

DSRIP is a five-year program supporting unprecedented collaboration among Medicaid providers and community groups through the formation of working partnerships called Performing Provider Systems (PPSs). Support is incentivized, meaning that each PPS earns funding only by meeting predefined milestones in clinical management, population health, and system transformation, and by demonstrating a 25-percent reduction in avoidable hospital use by the end of the program.

To participate in the DSRIP program, providers contractually agree to work together as partners within the PPS. The PPS collectively assumes responsibility for the health of the population it serves, committing to the provision of culturally competent, highly integrated, well-coordinated, and easily accessible health services.