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DHS health partnership demonstration expands with new contracts

Addition of Hennepin Healthcare System and Mayo Clinic help project reach 130,000 Minnesotans enrolled in Medical Assistance

February 13, 2014

Katie Mintz

PDF version of news release

The Minnesota Department of Human Services is expanding its Integrated Health Partnerships (IHP) demonstration with new contract awards for Hennepin Healthcare System (Hennepin County Medical Center Hospital and Clinics) and Mayo Clinic, beginning Jan. 1, 2014. Along with six providers already participating in the demonstration, the additions increase its scope to 130,000 Medical Assistance enrollees.

The Integrated Health Partnerships demonstration, formerly called the Health Care Delivery Systems (HCDS) demonstration, strives to deliver higher quality and lower costs through innovative approaches to care and payment. Through this demonstration, Minnesota is one of a growing number of states to implement an Accountable Care Organization model in its Medicaid program, with the goal of improving care for enrollees. In the first year of participation, providers can share in savings. After the first year, providers also share the risk for losses.

Providers’ total costs for caring for enrollees in Medical Assistance, Minnesota’s Medicaid program, are measured against targets for cost and quality. DHS anticipates preliminary results for the first-year participants in the demonstration this summer, helping guide the project as it progresses.

The IHP demonstration is a key component of a $45 million federal State Innovation Model grant helping to drive health care reform in Minnesota.

Human Services Commissioner Lucinda Jesson welcomed early indications of success. “By paying for value instead of volume, this project is helping us contain health care costs while improving outcomes for the people we serve,” she said.

Participants in their second year of the demonstration are Children’s Hospitals and Clinics of Minnesota; CentraCare Health System; Essentia Health; Federally Qualified Health Center Urban Health Network (FUHN); North Memorial Health Care; and Northwest Metro Alliance (a partnership between Allina Health and HealthPartners).

DHS is also issuing a Request for Proposals for a third round of contracts that will begin Jan. 1, 2015. The RFP is available online at

Additional contacts for media:

Christine Hill
Hennepin Healthcare System Inc.

Bryan Anderson
Mayo Clinic

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