Integrated Health Partnerships Initiative

Program Location: 
Saint Paul, MN
Payer Type: 
Medicaid (Modeled after Medicare Shared Savings Program)

Reported Outcomes


In 2008 Minnesota passed health care legislation to improve affordability, expand coverage and improve the overall health of Minnesotans. In addition, the 2010 Legislature mandated that the Minnesota Department of Human Services (DHS) develop and implement a demonstration testing alternative and innovative health care delivery systems, including accountable care organizations.

This Integrated Health Partnerships (IHP) 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.

With this demonstration, Minnesota is one of a growing number of states to implement an Accountable Care Organization (ACO) model in its Medical Assistance (Medicaid) program, with the goal of improving care for enrollees. In their first year of participation, delivery systems can share in savings. After the first year, they also share the risk for losses. Delivery systems’ total costs for caring for enrollees in Medical Assistance are measured against targets for cost and quality.

The Integrated Health Partnerships demonstration is also a major component of the $45 million federal State Innovation Model grant helping to drive health care reform in Minnesota. The IHP demonstration will run for 3 years. In June 2015, the Department of Human Services announced plans to extend the IHP to half of all Medical Assistance adn MinnesotaCare enrollees (about 500,000 people) by the end of 2018. 

In the first 2 years of the demonstration, the IHP is already generating some impressive results by taking innovative steps, including:

  • providing more intensive primary care services and building stronger relationships with mental health care providers and community resources
  • employing community health workers to deliver culturally competant care. CHWs at Hennepin Health identify patient needs such as housing and transportation and to develop a plan, goals and follow-up. They also reach out to patients at homeless shelters, day centers and correctional facilities


Payment Model: 

The IHP demonstration gives participating providers financial incentives to manage the total cost of care and better coordinate medical care for patients enrolled in Medical Assistance, Minnesota’s Medicaid program. Providers who meet a threshold for savings are eligible for a share of the savings; beginning in the second year, they also share the downside risk if costs are higher than projected.

For more information on the IHP demonstration's payment model, click here

Cost Savings: 

Minnesota Department of Human Services (June 2015)

  • $61.5 million in savings in 2014 for 9 provider groups serving 165,000 Minnesotans
  • Based on initial 2014 data, all 9 provider groups were eligible for shared savings

Minnesota Department of Human Services (July 2014)

  • $14.8 million in savings for six health care providers serving 100,000 Minnesotans. *preliminary data reported 10.5 million in savings, but final numbers determined the amount to be $14.8 million
Last updated July 2015
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