Menendez, Lautenberg Announce $18 Million For Health Care Innovation in NJ
New Jersey innovation will serve as national model for health care savings
June 19, 2012
Washington – U.S. Senators Robert Menendez (D-NJ) and Frank R. Lautenberg (D-NJ) today announced that the Center for Medicare and Medicaid Innovation (CMMI), established by the Affordable Care Act, has awarded over $14.3 million to Rutgers University and $3.7 million to Developmental Disabilities Health Alliance, Inc. in Bloomfield through their competitive Health Care Innovation Awards program. These investments are estimated to identify and generate more than $72 million in health care costs savings over a three year period.
“These investments will help great New Jersey institutions like Rutgers University innovate ways to deliver better health care at lower costs, creating a positive ripple effect throughout our health care system,” said Senator Menendez. “Thanks to the Affordable Care Act, we’re investing in our local communities and States, giving them the resources they need to make our health care system more efficient and effective. I am proud that our great State University will be at the forefront of helping to test and implement ways to improve care delivery and make our health care system stronger. ”
"The Affordable Care Act is helping hundreds of thousands of people in our state and this federal grant will ensure that New Jersey plays a leadership role in implementing the historic health care reform law," said Senator Lautenberg. "Rutgers University has the expertise and resources to develop models that will improve care and reduce costs for Medicare and Medicaid beneficiaries in New Jersey and across the country."
The Rutgers Center for State Health Policy (CSHP) will use this funding to further develop their Sustainable High-Utilization Team Model, serving as a national model to improve care and lower costs across the country. By better identifying patients’ care needs and then re-directing them to other services, agencies and resources that are less costly than inpatient and emergency care, this $14.3 million investment is estimated to identify and generate $67.7 million in health care savings. Rugters CSHP will partner with the Camden Coalition of Health Care Providers, which has developed a similar care model, and the Center for Health Care Strategies, based in Hamilton. This model will be developed and implemented over a three-year period in Allentown, PA, Aurora, CO, Kansas City, MO, and San Diego, CA, training an estimated 155 workers and creating an estimated 43 jobs.
Developmental Disabilities Health Alliance, Inc. located in Bloomfield will use this funding to test a developmental disabilities health home model in New Jersey, New York and Arkansas. By integrating care using nurse practitioners as care coordinators and health care providers, this model will improve primary care, mental health care, basic neurological care, and seizure management for these beneficiaries, resulting in reduced emergency room visits and lower out-of home placement and institutionalization. Over a three-year period, this investment is estimated to identify and generate over $5.3 million in health care cost savings.
The Health Care Innovation Awards program was established through the Affordable Care Act to encourage the development of new ideas for delivering better health care at lower cost to individuals in Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP). For a full list of the Health Care Innovation Awards please Click Here and for more information on the Affordable Care Act please Click Here.
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