Obama Administration Launches $1B Initiative for Health Care Innovation

Health and Human Services Secretary Kathleen Sebelius today announced a nearly $1 billion initiative that will fund awards and evaluation to build on the Obama administration’s work to transform the health care system by delivering better care and lowering costs.  This second round of Health Care Innovation Awards will fund applicants that have a high likelihood of driving health care system transformation and delivering better outcomes.

Made possible by the Affordable Care Act, the Health Care Innovation Awards provides another opportunity to improve the quality of health care and bring down costs for taxpayers and patients. The health care law includes many tools to avoid costly mistakes and readmissions, keep patients healthy, reward quality instead of quantity, and create health information technology infrastructure that enables new payment and delivery models to work. The provisions in the Affordable Care Act are already working to reduce costs: Medicare spending per beneficiary increased by just 0.4 percent last year, far below historical averages.

Last year, the Centers for Medicare & Medicaid Services awarded 107 round one Health Care Innovation Awards out of nearly 3,000 applications to organizations that are currently testing innovative solutions to improve outcomes and reduce costs. Projects are located in urban and rural areas, all 50 states, the District of Columbia and Puerto Rico.

This second round of Health Care Innovation Awards differs from the first round in that CMS is specifically seeking innovations in four areas: rapidly reducing costs for patients with Medicare and Medicaid in outpatient hospital and other settings; improving care for populations with specialized needs; testing improved financial and clinical models for specific types of providers, including specialists; and linking clinical care delivery to preventive and population health. Like the first round, these awards will emphasize results and ensure program integrity.

To review a list of past award recipients, including those recipients that conducted home health care-related projects, click here to search awards by state. For more information, including a fact sheet and Funding Opportunity Announcement, please visit the Health Care Innovation Awards initiative website.

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