March 19, 2024

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Chase Cook, Director, Office of Communications, 410-767-8649

Maryland applies for Health Care Innovation Model to improve health outcomes and health equity, control costs

Baltimore, MD – The Maryland Department of Health and the Maryland Health Services Cost Review Commission announced today an application to participate in the Centers for Medicare and Medicaid Services’ States Advancing All-Payer Health Equity Approaches and Development Model. The model advances Maryland’s vision of empowering all Marylanders to achieve optimal health and well-being. 

“The model benefits Maryland as the pathway to continue the state’s long-term commitment to improving statewide health care quality, health outcomes, and health equity — all while controlling cost growth,” said Maryland Department of Health Secretary Dr. Laura Herrera Scott. “This opportunity allows Maryland to bridge the health care, population health, and social sectors as well as the public and private sectors to implement the solutions Marylanders need, as identified by community members themselves.” 

Maryland’s long experience with health care payment and delivery system reform is an advantage in its model application. Maryland has had a unique hospital payment system since the 1970s, with increased focus on delivery system reform in Maryland’s All-Payer Model (2014-2018) and the Total Cost of Care Model (2019-today). The new model will set standards for hospital quality, includes an advanced primary care program, seeks to improve population health, and uses hospital global budgets on revenue to control costs. 

Maryland will leverage the model tools to promote health equity, ensure high-value care, and improve access to care in order to achieve high value, equitable, and excellence in the health delivery system. Infrastructure investments will support the actions needed to achieve Maryland’s vision, including investments in workforce; administrative simplification for health care providers; and health information technology, data, and analytics.

“The States Advancing All-Payer Health Equity Approaches and Development Model is the pathway to continue Maryland’s all-payer hospital rate setting authority,” said Maryland Health Services Cost Review Commission Executive Director Jon Kromm. “The model offers tools for primary care transformation, health care cost containment, and population health improvement.”

Under the new model, Maryland will develop a State Health Equity Plan to elevate community voices in defining our shared commitment to health; integrate and align resources across clinical and population health needs; and work to overcome systemic and structural racial and ethnic health inequities. The state’s Health Equity Plan will be the foundation for all actions and investments under the Model. 

Maryland’s application includes a request for funding for investments in health equity and health-related social needs. This includes funding for:

• Five regional community-based population health hubs to support community-level population health investment and efforts to address health-related social needs;

• Community grants to address population health and health-related social needs; and

• Technology for statewide coordinated health-related social needs screening and referral.

To support the development of Maryland’s application, the Maryland Department of Health and the Health Services Cost Review Commission convened three committees to provide advisory support related to population health and health equity, primary care, and health care delivery transformation. Maryland anticipates that the Centers for Medicare and Medicaid Services plans to make decisions on Maryland’s application to the model this summer. 

The state envisions that additional policy development and decision making for the model will begin in July 2024 and continue through the July 2025 execution of a contractual agreement between Maryland and the Centers for Medicare and Medicaid Services. Implementation is expected to begin in 2026. Maryland remains committed to engaging key partners and the public at large as it continues to plan the state’s implementation strategy.

More information about the States Advancing All-Payer Health Equity Approaches and Development Model is available on the Centers for Medicare and Medicaid Services' website.

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The Maryland Department of Health is dedicated to protecting and improving the health and safety of all Marylanders through disease prevention, access to care, quality management and community engagement.