HHSC accepts offer for FY2022 DSRIP, QIPP, and UHRIP; Commits to work on state-directed payments


Eli Kirshbaum


The Texas Health and Human Services Commission (HHSC) announces acceptance of the offer made by the Centers for Medicare and Medicaid Services (CMS) to extend the Delivery System Reform Incentive Payment (DSRIP) program, the Uniform Hospital Rate Increase Program (UHRIP), and the Quality Incentive Payment Program (QIPP) for Fiscal Year 2022.  HHSC also commits to continued collaborate on state-directed payments (SDPs) with CMS as required by the 1115 Texas Healthcare Transformation and Quality Improvement Program Waiver (Waiver).

The Waiver transitions from DSRIP to new SDPs and includes the necessary financing framework to provide long-term stability for the state’s critical healthcare system. Given the start of state fiscal year 2022 on September 1, 2021, the ongoing COVID-19 public health emergency, and CMS’ communications that it will not approve the new proposed SDPs at this time, HHSC will work with CMS to maintain existing payment programs on a temporary basis and achieve agreement on a long-term solution that aligns with the Special Terms and Conditions (STCs) of the Waiver.

Texas accepts CMS’ offer to continue DSRIP for one year and will submit a Waiver amendment to extend DSRIP in the amount of $2.49 billion, which is the DSRIP funding amount for the demonstration year (DY) ending September 30, 2021. Texas accepts CMS’ offer to approve QIPP and temporarily renew UHRIP.

This temporary solution will allow providers to continue receiving these SDPs during the COVID-19 public health emergency while HHSC and CMS continue their work, as outlined in the STCs, toward final approval of the four other pending pre-prints (Comprehensive Hospital Increased Reimbursement Program (CHIRP), Texas Incentives for Physicians and Professional Services (TIPPS), Directed-Payment Program for Behavioral Health Services (DPP for BHS), and Rural Access to Primary and Preventive Services (RAPPS)).

This press release was provided by the Texas Health and Human Services Commission (HHSC).