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CMS Announces New Innovation Agenda: Here鈥檚 What You Need to Know

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On May 13, 2025, the Centers for Medicare & Medicaid Services (CMS) published its new for the CMS Innovation Center. The strategy builds on the lessons of the first 15 years of the Innovation Center, while presenting a significant pivot in policy direction, which emphasizes evidence-based prevention, consumer engagement, and tech-enabled care, while prioritizing financial performance over broad participation.

The provides high-level direction on the Trump Administration鈥檚 vision for the next phase of value-based payment reform under the leadership of CMS Administrator Dr. Mehmet Oz and Innovation Center Director Abe Sutton. They intend to 鈥渄ouble down on our commitment to value-based care and take the learnings from the[se] previous investments to build a health system that empowers people to drive and achieve their health goals and Make America Healthy Again.鈥� Notably, the strategy also aligns with goals central to the Trump Administration鈥檚 .

This new direction affirms the administration鈥檚 commitment to continue advancing value-based care and opens additional opportunities for organizations seeking to enhance the delivery of 杏吧视频 that drive positive outcomes. 杏吧视频 (HMA), experts will be tracking the implementation of the Innovation Center鈥檚 new strategy, including expected forthcoming models, movement toward greater levels of downside risk, and changes to existing models to align with the administration鈥檚 priorities. In this article, our experts review the strategy and provide insights on key takeaways for stakeholders.

New Strategy Overview

CMS leaders view the Innovation Center agenda as a framework for accelerating healthy behaviors, leveraging the agency鈥檚 authority to test new approaches designed to incentivize and engage stakeholders. According to CMS officials, the Innovation Center 鈥渨ill work expeditiously toward the future of health鈥攂uilding a system in which people are empowered to achieve their health goals and providers are incentivized to compete to deliver high-quality, efficient care and improve the health outcomes of their patients.鈥�

The strategy has three interrelated, foundational pillars:

  • Promoting evidence-based prevention
  • Empowering people to achieve their health goals
  • Driving choice and competition.

Table 1 provides more detail on each pillar.

In addition to the new agenda, CMS released a seeking industry input on strategies that can better leverage data and technology to empower consumers. The focus of the RFI aligns with the Innovation Center鈥檚 strategic pillars to use tools, information, and processes that better connect people to their health data and allow them to make informed health decisions alongside their providers.

Table 1. CMMI鈥檚 Interrelated Strategic Pillars

Takeaways and Considerations

Critical to CMS鈥檚 approach is the belief that empowering individuals to make their health decisions鈥攖hrough incentives, better data access, and more flexible options鈥攃an lead to better health outcomes and lower overall costs. This shift reflects an evolution in healthcare policy that places greater emphasis on personal accountability and private sector collaboration鈥攁 key theme that is emerging across the administration鈥檚 policy initiatives.

Consumer Engagement. One of the most notable aspects of the new Innovation Center strategy is the promotion of consumer engagement; it places more focus on direct consumer engagement through education and incentives compared with earlier initiatives. This is one area in which the Innovation Center plans to collaborate with the private sector to develop consumer-facing tools (e.g., mobile apps, nudges toward healthy behaviors, etc.).

The focus on consumer engagement also presents opportunities for organizations to enhance their customer experience. By understanding the needs and preferences of their patients, organizations can tailor their 杏吧视频 and care models to better meet those demands. This personalized approach not only improves patient satisfaction, but also drives continuity of care, ultimately contributing to long-term improvements in health.

Data and Technology. The new strategy also emphasizes the importance of data, indicating intentions to better equip organizations that participate in the model with data that can inform decisions and optimize their processes. CMS officials are examining policies and collaborations that will empower private sector organizations, including model participants, researchers, and technology vendors, to develop innovative data-driven solutions to drive efficiencies and improved health.

To that end, the May 16, 2025, Request for Information (RFI) from CMS and the Assistant Secretary for Technology Policy/Office of the National Coordinator for Health (ASTP/ONC), (CMS-0042-NC), focuses on Medicare beneficiaries’ use of technology to improve health outcomes. The RFI, which HMA experts analyze here [insert bookmark or link to the other In Focus article] underscores the administration鈥檚 intentions of taking 鈥渂old steps to modernize the nation鈥檚 digital health ecosystem.鈥�

Medicare Advantage. The Innovation Center鈥檚 new strategy indicates that stakeholders should expect more models that address Medicare Advantage (MA). The agency stated that 鈥渇eatures of a model could include testing changes to payment for MA plans, such as testing the impact of inferred risk scores, regional benchmarks, or changes to quality measures that better align with promoting health.鈥� Additionally, the strategy references a forthcoming specialty-focused longitudinal care model within MA and Medicaid, signaling intentions to drive multi-payer alignment.

Saving Federal Tax Dollars. Another major aspect of the strategy is 鈥減rotecting federal taxpayers.鈥� This goal reflects a continued emphasis on total cost of care accountability and indicates a more aggressive shift to downside risk. The Innovation Center says it will 鈥渞equire all models to have downside financial risk and require providers to assume some of the financial risk..鈥� Additional provisions of protecting tax dollars include reducing role of state governments in rate setting, simplifying model benchmark methodology, and ensuring 鈥減roper and nondiscriminatory provision of funds for health care 杏吧视频.鈥�

What to Watch

For healthcare organizations, the Innovation Center鈥檚 agenda signals a need to prioritize consumer-centric models. Hospitals, providers, and insurers should anticipate the following:

  • Increased focus on preventive care initiatives to align with new model designs
  • More robust data-sharing and technology requirements, meaning investments in patient-focused digital tools will become essential
  • New opportunities in MA, given potential payment model innovations affecting plan structures and risk-adjusted reimbursement

Healthcare stakeholders should monitor possible developments related to the strategy.

  • While details on specific strategies have yet to emerge, the Innovation Center it plans to provide more information on new models, as well as changes to existing models, in the coming months.
  • The Innovation Center has not provided a goal akin to the previous administration鈥檚 effort to have 100 percent of Medicare beneficiaries in accountable care relationships by 2030. It is still unknown whether these goals are forthcoming or if this will remain vague.
  • Stakeholders are still awaiting clarity on changes to existing models, including key models set to conclude at the end of 2026 (i.e., ACO REACH and Kidney Care Choices).
  • Strategy language indicates that the agency may develop payment innovation in prescription drugs, medical devices, and technology.

Connect With Us

The 杏吧视频 Annual Conference, , October 14-16, 2025, in New Orleans, LA, will feature discussions on how the new strategy is reshaping the healthcare system and care delivery for patients, particularly the opportunities to revisit provider contracts with MA plans and to integrate technology to advance the prevention of chronic conditions and achieve population health goals.

For more information about the opportunities and considerations the Innovation Center agenda presents for your organization, contact HMA鈥檚 featured experts below.

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Transforming Crisis Care Intervention: The Role of 988

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This week, our third In Focus section highlights the national 988 Suicide and Crisis Lifeline, the three-digit number for individuals in need of behavioral health crisis support. The 988 Lifeline is composed of 200-plus contact centers across the country, which connect people to trained counselors to deescalate crises, provide behavioral health resources, or connect individuals to an in-person responder. Supported by federal legislation to help create a nationwide, standardized, easy to remember 3-digit number, the program is still in its early stages, having been established three years ago this coming July.

In this article, 杏吧视频 (HMA) experts provide important context about the 988 Lifeline and future policy direction and suggests actions state leaders can take to enhance use of this critical resource.

988 Lifeline: A Product of Coordinated Collaboration

The story of how the 988 Lifeline was created is an example of long-term advocacy and innovation that demonstrates how a solution needs to combine the state and local decisionmakers with federal policy and support. People experiencing a mental health crisis, thoughts of suicide, or concerns about substance misuse should receive the appropriate local response to seek support or care.

Prior to the 988 Lifeline, individuals experiencing a behavioral health crisis may have contacted 911 and, therefore, not always received the most appropriate response for their unique needs. In some situations, 911 responders鈥攖ypically law enforcement, emergency medical 杏吧视频, or hospital emergency departments鈥攁re ill-equipped to direct people experiencing a behavioral health crisis. Trained behavioral health professionals responding to an individual experiencing a crisis is the appropriate intervention at most points of access. Increased diversion from 911 calls to 988 when an individual is experiencing a behavioral health crisis is an expected long-term outcome.

The federal government鈥檚 role is to continue to support the work to enhance the 988 Lifeline, but there’s so much more that needs to happen to increase education and awareness in states, localities, and Tribal nations. They still need support in building out their systems.

State Initiatives Strengthening the 988 Lifeline

Since the launch of the 988 Lifeline in July 2022, 50 percent of the states have approved some type of appropriation or some type of legislation to further cement 988 in their local communities. Some states have established trust funds or implemented 988 cell phone fees similar to what 911 does to provide financial support. Other states have established committees to study and support 988 implementation, building out the various components of a true coordinated crisis system of care.

HMA experts have identified strategic and operational recommendations to support this ongoing work, including:

  • Be intentional about having the right people at the table where decisions are made, including voices with lived experience and people who are part of the policy-making process. Establishing this formal, standardized 988 system enables local communities to better allocate resources in crisis situations. In most cases, the contact with the 988 Lifeline is the best intervention to ensure people get the support or resources needed to resolve or deescalate the crisis.
  • When designing a crisis system in a community, think about prevention and what happens when the crisis is over. Crisis systems established on a poor behavioral health foundation will fail. Stakeholders and decisionmakers should continue building out their systems by remembering that the entire continuum of care鈥攆rom crisis to ongoing support鈥攊s needed.
  • Identify the data that are needed to tell the story about the value of the 988 Lifeline and crisis care systems. Anecdotes are essential and should be paired with data, especially when ongoing funding is needed.

Where Is the 988 Lifeline Headed?

It is likely to take decades to generate greater awareness about the 988 Lifeline, to have interoperability between 911/988, to ensure every person in the country has access to the service no matter their zip code, and to see a fully transformed behavioral health crisis system will take decades to accomplish. The collaboration between federal, state, territories, Tribal nations, and local communities is pivotal to reaching these goals.

While we are at the beginning phases of this work, much has been done that should be celebrated. The 988 Lifeline has transformed how we as a nation talk about behavioral health and suicide prevention. Still, we as a collective have work ahead to achieve the vision of transforming the behavioral health crisis care system.

Connect with Us

杏吧视频 (HMA) is hosting a live, interactive event on Thursday, May 29, 2025. [The Ask the Experts: Behavioral Health Town Hall /insights/webinars/ask-hma-experts-behavioral-health-town-hall/ ] will explore the latest developments in behavioral health鈥攆rom policy shifts and funding trends to real-world solutions for service delivery, workforce challenges, and system design. HMA and Leavitt Partners, an HMA Company, experts will be on hand to answer participant questions and share insights about 988 and other topics:

  • Policy and funding updates at the federal level
  • Innovative approaches to crisis response, 988 implementation, and substance use 杏吧视频
  • Revenue cycle improvements and evolving payment models
  • Strategies to strengthen the workforce, integrate care, and leverage digital mental health tools

For more information about 988 systems and effective practices emerging in crisis care, contact Monica Johnson, Managing Director for Behavioral Health. Prior to joining HMA, Ms. Johnson, Managing Director for Behavioral Health, was the director of the 988 & Behavioral Health Crisis Coordinating Office at the Substance Abuse and Mental Health Services Administration鈥攖he federal agency that leads public health efforts to advance the behavioral health of the nation.

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Building State Capacities for Medicaid Work and Community Engagement Requirements

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Medicaid covers nearly 80 million people nationally, with an estimated 20 million covered through the Medicaid expansion. As state legislatures pass work requirement laws, governors consider executive actions, and Congress contemplates a nationwide mandate, vetting key implementation issues can significantly impact the direction of related policies.

It is difficult to generate accurate projections given the lack of specificity in the current legislation and state implementation variables. According to Congressional Budget Office (CBO) estimates, approximately 5 million people with coverage because of the Medicaid expansion would lose their coverage as a result of not meeting community engagement requirements. The legislation passed by the House on May 22nd establishes a deadline of December 31, 2026 for implementation, but individual states could move earlier.  Even before implementation, states must test operations, enable systems, and establish connections to beneficiaries to reduce potential implementation missteps, inappropriate disenrollments, and litigation risks.

If the goal of Medicaid work requirement policies is to stimulate connections between health benefits and employment/workforce, building state and federal capacities to support these approaches is critical to effectuating that change. This blog focuses on introducing operational dynamics that need to be discussed, tested, and built.

Legislative and Other Context

In the language that House advanced, all states would be obliged to implement work and community engagement requirements for adults without dependents for at least 80 hours per month.[1] Employment, work programs, education, or community service (or a combination of those activities) would satisfy the requirement. There were also provisions which enabled states to implement more frequent eligibility checks and compliance requirements as well as co-pays for certain 杏吧视频. Though the federal authorization has received a great deal of attention, at least 14 states have moved forward (see Table 1) in advance of the current federal debate by passing laws and submitting work requirement demonstration requests to the Centers for Medicare & Medicaid Services (CMS).

Table 1. A Review of 2025 States’ Approaches to Work Requirements in Medicaid
StatusStatePopulation CriteriaRequirementsExemptions/ NotesPublic Comment
Work Requirement Request SubmittedArizonaAges 19鈭�5580 hours/monthMultiple exemptions; 5-year lifetime limitClosed
Work Requirement Request SubmittedArkansasAges 19鈭�64; covered by a qualified health plan (QHP)Data matching to assess whether on track/not on trackNo exemptionsClosed
Work Requirement Amendment Request SubmittedGeorgiaAges 19鈭�64; 0-100% FPL80 hours/monthAlready has approval but is requesting reporting be changed from monthly to annually and adding more qualifying activitiesFederal comment period open through June 1, 2025
Work Requirement Request SubmittedOhioAges 19鈭�54; expansion adultsUnspecified hoursLimited list of exemptionsClosed
Legislation PassedIdahoAges 19鈭�6420 hours/week requiredLimited list of exemptions鈥�
Legislation PassedIndianaAges 19鈭�64; expansion adults20 hours/week requiredLimited list of exemptions鈥�
Legislation PassedMontanaAges 19鈭�5580 hours/month requiredMultiple exemptions鈥�
Ballot Initiative PassedSouth DakotaExpansion adults鈥�2024 ballot initiative asking voters for approval for state to impose work requirements for expansion adults passed鈥�
Legislation PendingNorth Carolina鈥�鈥�Pursue requirements that are CMS approvable鈥�
Work Requirement Request DraftIowaAges 19鈭�64; expansion adults100 hours/month requiredLimited list of exemptions Separate bill would end expansion if work requirements are withdrawn/ prohibited (80 hr./mo.)Closed
Work Requirement Request DraftKentuckyAges 19鈭�60; no dependents; enrolled more than 12 monthsConnected to employment resourcesMultiple exemptionsState comment period open through June 12, 2025
Work Requirement Request DraftSouth CarolinaAges 19鈭�64; 67%鈭�100% FPLSpecified activities (work specific is 80 hours/month)Limiting participation to 11,400 individuals based upon available state fundingState comment period open through May 31, 2025
Work Requirement Request DraftUtahExpansion adults ages 19鈭�59Register for work, complete an employment training assessment and assigned job training, and apply to jobs with at least 48 employers within 3 months of enrollmentSeveral exemptions, largely aligned with federal SNAP exemptionsState comment period open through May 22, 2025
Anticipated Waiver RequestAlabamaNon-expansion population鈥�Potential to resubmit previous work requirement demonstration request鈥�

Key Questions Regarding State Policy Options

Considerable research and findings put policymakers in a better position to be prepared to act on a new law since previous attempts and implementing similar policies exposed fundamental problems. Some previous findings include the high cost of administration relative to potential savings, the importance of systems that support foundational items like logging an enrollee鈥檚 compliance activities and exemptions, as well as developing an efficient appeals process. The Medicaid and CHIP Payment and Access Commission, General Accounting Office, National Institutes for Health, and multiple researchers have published assessments regarding previous experiences that could improve policymaking.

Below we discuss critical issues and considerations including:

  1. Exemptions, particularly medical frailty definitions and assessments
  2. Developing and streamlining systems and process to promote continued coverage for eligible individuals
  3. Clinical and utilization data that promotes eligibility assessment
  4. Managed Care engagement in Work Requirements/Community Engagement initiatives
  5. Measuring impact and adapting policies where needed

1. Which populations are exempt from work requirements?

The requirements in the current legislation would apply only to individuals between the ages of 19 and 64 without dependents, and the following groups are exempted: women who are pregnant or entitled to postpartum medical assistance, members of Tribes, individuals who are medically frail (i.e., people who are blind, disabled, with chronic substance use disorder, serious or complex medical conditions, or others as approved by the Secretary of the U.S. Department of Health and Human Services), parents or caregivers to a dependent child or individuals with a disability, veterans, people who are participating in a drug or alcoholic treatment and rehabilitation program, or individuals who are incarcerated or have been released from incarceration in the past 90 days. Additionally, individuals who already meet work requirements through other programs, such as Temporary Assistance for Needy Families (TANF) or the Supplemental Nutrition Assistance Program (SNAP), would be exempt. However, according to the House-passed version, the eligibility verification and work requirements for SNAP have been made more stringent and program costs are being shifted to states, which affects cross-functional eligibility. Lastly, the legislation includes temporary hardship waivers for natural disasters and areas with an unemployment rate greater than 8 percent or 150 percent of the national average.

The federal government and/or states will identify individuals classified as “medically frail” and make them exempt them from the mandates. This includes those with chronic, serious, or complex medical conditions. Various methods may be employed to identify these individuals, such as analyzing historical medical and pharmacy data to categorize complex conditions, using proprietary algorithms to stratify individuals with multiple comorbidities, and enabling physicians to evaluate enrollees without relying on a claims history.

2. Which systems best align to build from and support coverage?

The Medicaid unwinding from the COVID Public Health Emergency taught lessons about the complexities of Medicaid systems (e.g., assessing cases to ensure eligible children retain coverage if a parent is removed), patient engagement, and reliable methods of member outreach (e.g., email, text, and member portals rather than paper communication). Call abandonment rates, call center wait times, and application processing times surfaced as practical measures of performance (or lack thereof) during the Medicaid unwinding. Multiple informal sources point to poor mailing address or 鈥渞eturn to sender鈥� as being anywhere between 15 and 50 percent, bringing tangibility to an implementation baseline. TANF and SNAP programs have work requirement provisions. While those programs are regulated and administered by multiple federal and state agencies, the platforms that support those provisions and the potential for integration are critical vehicles to explore. 

State Workforce Commissions and Departments of Labor are clear partners, as they manage integrated eligibility systems and data-sharing agreements across programs like SNAP and TANF, which also serve many Medicaid participants. These and other partnerships will need to be explored to address engagement challenges for many populations, including individuals facing housing instability, which disrupts communication, engagement, and compliance tracking.[2] It is essential that states develop targeted outreach and education strategies to support awareness of participation requirements and ways for individuals to meaningfully engage.

3. Do we have a sense of the healthcare needs/chronic conditions among the Medicaid enrollees that will be affected by work requirements?

Many individuals with chronic diseases may be exempt from the requirements, but not all of them. To that end, insights regarding pharmacy claims may be a useful lens through which we can ascertain an understanding of the potential impact on utilization trends. Notably, the Medicaid expansion population still has significant healthcare utilization rates for 杏吧视频 related to behavioral health and for chronic health conditions like hypertension and diabetes. In fact, a recent 杏吧视频 (HMA), analysis of CMS data indicated that the top pharmaceuticals spending classes for the Medicaid expansion population were hypoglycemics ($7.6 billion), antivirals ($5.5 billion), and anti-inflammatories ($3.3 billion). The drugs are used to treat autoimmune conditions, including rheumatoid arthritis and psoriatic arthritis. Knowing the health status and chronic conditions of the populations affected and which conditions qualify for exemption are variables as implementation issues like the definition of medically frail are addressed.

4. What does this mean for managed care organizations?

Approximately of Medicaid expansion beneficiaries are enrolled in comprehensive managed care organizations (MCOs). States will need to review the scope of existing vendor contracts as well as determine the need for new 杏吧视频, roles, third-party reporting, oversight, and potential exemptions for emergencies. Work requirements can disrupt MCO risk pool stability and care coordination because of administrative burdens and disruptive, less predictable enrollment cycles. That said, MCOs not only have a financial incentive to drive down inappropriate disenrollments, but are also uniquely positioned to support state responsibilities, including maintenance of up-to-date contact information. The delineation of roles and clarification of contracts and responsibilities  among states, MCOs, TPAs, and other specialty organizations supporting work requirements will be a critical early-stage framing point for a functional infrastructure.

Many states have sought to support more seamlessness among insurers, with a goal of having the same insurers provide coverage to people as they transition through Medicaid, Marketplace, and employer-sponsored insurance (ESI) as their employment status changes over time. States like Nevada, Rhode Island, and New Mexico require Medicaid MCOs to participate in the Marketplace. Additionally, states like North Carolina, Utah, and West Virginia not only require MCO participation in the Marketplace, but also enable MCOs to co-market Medicaid and Marketplace products for individuals who lose their Medicaid eligibility.

As Figure 1 indicates, Marketplace enrollment in non-expansion states has received considerable traction in recent years and has outpaced expansion states with respect to member growth in the past five years. Marketplaces have undeniably carved out large roles in the health coverage infrastructure in non-expansion states鈥攁 point that was less clear just a few years ago. Though, multiple factors affect those Marketplace growth rates, including congressional decisions regarding the continuation and funding of the enhanced premium tax credit program. In the current legislation, these credits expire, which the CBO estimates will lead to an additional coverage loss of nearly 5 million by 2034.

5. Can states measure and be nimble with policies as the impacts are determined?

Federal and state regulations that identify contextualized and dynamic metrics that provide actionable information to federal and state policy makers will support effective oversight and monitoring. States starting with listening sessions in the near term can help identify goals and metrics. The focus of such efforts could include actively monitoring potential changes and cost shifts for the uninsured population to non-public payers and providers.

The Medicaid unwinding also demonstrated that the story was far less of a red/blue story than a series of complex tasks that required many administrative resources, provider and community partnerships, and enrollee outreach to create a path that would limit unnecessary disruptions and expenses. CMS guidance for goals and evaluations as well as state inputs will need to emerge prior to implementation so policymakers can be well-equipped to be nimble and dynamic with policy changes as well as understanding the short-term and longitudinal effects of this fundamental shift.

[1] U.S. Congress. House. One Big Beautiful Bill Act. H.R.1. 119th Cong., 1st sess. Introduced May 20, 2025. .

[2] Soni A, Blackburn J. Health Characteristics of Adults Unable to Complete Medicaid Renewal During the Unwinding Period. JAMA Health Forum. 2025;6(3):e250092. doi:10.1001/jamahealthforum.2025.0092

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From Policy to Practice: HMA Offers New Toolkit for Tackling the Challenges of Implementing the 1115 Justice-Involved Reentry Demonstration in Carceral Settings

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The Section 1115 Justice-Involved (JI) Reentry Demonstration marks a transformative step in closing the healthcare gap for incarcerated individuals. By allowing Medicaid coverage to resume up to 90 days prior to release, the demonstration aims to improve care continuity and reduce recidivism. Yet, translating this vision into action within jails, prisons, and juvenile detention facilities presents a host of operational challenges. For implementation to succeed, jurisdictions must navigate fragmented systems, strained resources, and competing priorities. That鈥檚 where structured tools鈥攍ike implementation checklists鈥攂ecome essential.

The Challenges: Implementation in Complex, High-Stakes Environments

Implementing the 1115 JI Reentry Demonstration is more than a policy shift鈥攊t鈥檚 a systemic overhaul that requires cross-agency collaboration, infrastructure alignment, and cultural change. Among the most significant challenges:

1. Fragmented Systems and Data Silos

Carceral systems, Medicaid agencies, and community-based providers often operate in silos, using different data platforms and standards. This fragmentation hinders real-time information exchange and care coordination during the transition from incarceration to the community.

2. Operational Readiness Gaps

Many facilities lack established procedures for conducting Medicaid eligibility screenings, care plan development, and referrals to community-based 杏吧视频 within the release window. Without predefined workflows, implementation can stall.

3. Workforce Capacity and Training Needs

Reentry planning demands coordination among correctional officers, social workers, nurses, behavioral health clinicians, and Medicaid staff. Many jurisdictions face staffing shortages and limited training on trauma-informed care, care management, or reentry protocols.

4. Policy Misalignment and Legal Constraints

Local policies may restrict access to Medicaid-related functions during incarceration, or limit facility staff鈥檚 ability to share data. Misinterpretation of federal and state rules can create implementation delays.

5. Trust and Engagement Barriers

Justice-involved individuals often face stigma or mistrust from systems they鈥檝e interacted with. Culturally responsive engagement strategies are crucial but frequently underdeveloped.

The Solution: Using a Checklist-Based Implementation Framework

To navigate these hurdles, stakeholders need more than vision鈥攖hey need structure. Implementation checklists tailored to jails, prisons, and juvenile facilities serve as a practical roadmap that transforms policy goals into operational plans. Here’s how they help:

  • Clarify Roles and Responsibilities

Checklists break down complex goals into clear, role-specific tasks鈥攚ho enrolls individuals in Medicaid, who develops care plans, and who ensures warm handoffs to community providers.

  • Promote Cross-Sector Coordination

Structured checklists prompt regular touchpoints across agencies鈥攃orrections, health 杏吧视频, Medicaid, and behavioral health鈥攅nsuring alignment and accountability.

  • Standardize Procedures and Tools

By specifying recommended workflows, assessment tools, and communication protocols, checklists minimize variation and streamline implementation across facilities.

  • Track Progress and Gaps

Built-in progress indicators make it easier to monitor what鈥檚 completed, what鈥檚 pending, and where additional support or training is needed.

  • Support Compliance and Evaluation

A checklist-based approach provides the documentation trail needed for program audits, reporting, and continuous quality improvement.

Conclusion: A Strategic Tool for Lasting Impact

Implementing the Section 1115 JI Reentry Demonstration is a bold, necessary move toward health equity and system transformation. But success depends on more than ambition. With structured checklists in hand, agencies can move from aspiration to execution鈥攂uilding a thoughtful, well-orchestrated reentry infrastructure that improves health outcomes, reduces recidivism, and meets federal expectations.

Download the HMA JI Toolkit here.

Other 1115 demonstration resources that may be of interest:

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President Issues Executive Order Calling for Most Favored Nation Drug Pricing

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On May 12, 2025, the President signed an Executive Order (EO), .鈥� The EO calls for or, in some cases, presumes a range of manufacturer, administrative and regulatory actions to reduce drug prices, but ultimate outcome remains unclear.

HMA experts, including Leavitt Partners, an HMA company, are closely following executive agency and stakeholder responses to the EO. In this article, our experts summarize the EO and identify key considerations for healthcare stakeholders.

Policy Overview

Since his first administration, President Trump has consistently criticized disparities in brand-name prescription drug prices between the United States and other developed countries. In 2018, the previous Trump Administration issued a  to institute an International Pricing Index (IPI) model targeting Medicare payments for a subset of clinician-administered drugs. The IPI model would have set a Medicare payment amount for select Part B drugs at a lower amount to align with international prices and allow for negotiation of prices, while still providing a drug add-on payment to providers consistent with historical drug costs.  In November 2020, the administration issued an interim final rule (IFR) instituting an escalated version of this concept, entitled the . Both the IPI proposal and the MFN final rule, the latter of which was enjoined by the courts on largely procedural grounds and later rescinded by the Biden administration, would have been implemented under the Center for Medicare and Medicaid Innovation鈥檚 (CMMI) demonstration authority.

On May 12, 2025, the President signed an EO, , which reaffirms the Administration鈥檚 concerns regarding what it perceives to be American funding of pharmaceutical research and development 鈥渨hile foreign health systems get a free ride.鈥� In an effort to address the Administration鈥檚 concerns, the EO notes that the Administration 鈥渨ill take immediate steps to end global freeloading鈥� and that 鈥渟hould drug manufacturers fail to offer American consumers the most-favored-nation lowest price, my Administration will take additional aggressive action.鈥�

The EO outlines efforts to implement this policy, including:

  • Trade Efforts.聽The US Department of Commerce and United States Trade Representative (USTR) are directed to ensure that foreign countries are not engaged in actions with the effect of forcing Americans to 鈥減ay for a disproportionate amount鈥� of R&D costs.
  • Direct-to-Consumer (DTC) Sales at MFN Price.聽The US Department of Health and Human Services (HHS) is directed to facilitate DTC sales programs for manufacturers to offer MFN prices.
  • MFN Targets.聽The HHS Secretary is directed to provide MFN targets to manufacturers within 30 days with the expectation that manufacturers will 鈥渂ring prices for American patients in line with comparably developed nations.鈥�
  • If 鈥渟ignificant progress鈥� toward MFN pricing is not made, HHS will be directed to propose a rulemaking plan to impose it.
  • The order suggests that the HHS Secretary certify, on a case-by-case basis, that reimportation will pose no additional risk to public health and will result in savings, as well as to create standard mechanisms for importation. It is unclear how this direction aligns with the current statutory framework, which is focused on Canada.
  • Federal Trade Commission/Department of Justice Action.聽The EO calls for efforts 鈥渃onsistent with law鈥� to undertake enforcement action against anticompetitive practices identified in the prior drug pricing EO, including use of the Sherman Antitrust Act.

Key Considerations

At this stage, the scope and practical effects of the EO remain uncertain, as the administration has not yet provided details regarding the regulatory and subregulatory actions envisioned under the document. With respect to trade policy, for instance, the EO does not outline explicitly what particular tools it expects USTR or the Commerce Department to leverage in combating 鈥渇oreign freeloading.鈥�

Similarly, the EO does not elaborate on the steps that the administration plans to take in 鈥渇acilitat[ing]鈥� voluntary MFN target pricing under DTC purchasing arrangements. Such efforts could theoretically bring waivers or other regulatory flexibilities to bear, or else they could take a more hands-off approach, simply encouraging drugmakers to take action on their own.

Without further clarifications around how the administration might define or assess 鈥渟ignificant progress鈥� towards MFN pricing targets on the part of manufacturers, nor the form, manner, or timeline that 鈥渁ggressive action鈥� in the absence of such progress might take, the EO serves principally as an illustration of the President鈥檚 posture, perspective, and priorities with respect to prescription drug affordability and access.

Even in the absence of immediate pricing or payment interventions, the EO could provide a preview of future executive actions aligned with the document鈥檚 focus. Such actions could include CMMI models building on the IPI or MFN initiatives from the first term, explicit trade negotiation priorities, regulatory measures related to DTC purchasing arrangements, FDA reimportation program flexibilities, or any number of other drug-related policies.

Our experts will continue to monitor these activities as they progress.

Connect With Us

For details regarding the EO and potential impact on the healthcare sector, contact our featured experts below at聽[email protected]

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House Committees Consider Policies to Meet Budget Reconciliation Instructions

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This week, key committees in the House of Representatives released recommendations for legislative language that meets their federal savings and spending targets required in the fiscal year (FY) 2025 budget resolution. On May 11, 2025, the House Energy and Commerce Committee released legislation鈥攁nd subsequently a substitute amendment鈥攖hat contains several substantive Medicaid proposals designed to address eligibility and enrollment; financing; fraud waste, and abuse; and to institute mandatory work and community engagement requirements and cost sharing. The Committee completed its markup on May 14, 2025, voting to approve the provisions in the substitute amendment.

The release of text and committee markups are key steps in Congress鈥檚 budget reconciliation process; however, proposals may change during Senate proceedings.

杏吧视频 (HMA), and Leavitt Partners, an HMA company, are tracking these developments and analyzing the extensive health and health-related legislative text, including the Medicaid, Medicare, and Affordable Care Act (ACA) Marketplace proposals. Below, we review the status of congressional efforts and key policies.

Background

The budget reconciliation process is a powerful tool for enacting significant fiscal policy changes, as it allows for expedited consideration and passage of budget-related legislation. It has been used in the past to enact major tax reforms, healthcare legislation, and other important budgetary measures.

In 2025, Congress has been actively working to develop its budget bills through a series of steps. The House adopted a budget resolution on February 25, 2025, which sets the framework for federal spending, revenue, and the debt limit for fiscal year 2025 and outlines budgetary levels for the following years through 2034. The Senate passed an amended version of the budget resolution on April 5, 2025. The Senate鈥檚 amendments included reconciliation instructions that require $4 billion in gross deficit reductions and allow a $5.8 trillion net deficit increase. On April 10, 2025, the House agreed to the Senate鈥檚 amendments with a vote of 216鈭�214. This agreement set the stage for the development of a reconciliation bill.

House Energy and Commerce Markup

On May 14, 2025, the House Committee on Energy and Commerce completed its second day of legislative language to comply with the Concurrent Resolution on the Budget for Fiscal Year 2025, voting to advance the proposals out of committee. The committee鈥檚 proposal excluded certain significant structural reforms that had generated concern among some members and stakeholders, such as broad reductions in the federal matching rate (enhanced federal matching assistance percentage (FMAP)) for Medicaid expansion populations, per-capita caps on federal Medicaid cost growth, or reductions in the safe harbor threshold for state Medicaid provider taxes. The proposal does, however, contain more than a dozen provisions that would reduce federal health care spending by $715 billion with the funding reductions mostly focused on Medicaid, which the Congressional Budget Office projects will reduce the federal share of Medicaid spending, including:

  • Adding mandatory work and community engagement requirements for individuals ages 19鈭�64 without dependents, subject to exceptions for pregnant women, people who are medically frail, people with disabilities, people in compliance with other government program work requirements, people living in areas experiencing a temporary hardship, and other individuals
  • Adding cost sharing for beneficiaries in the expansion population who earn more than 100 percent of the Federal Poverty Level, not to exceed $35 per item or service
  • Pausing implementation of several final rules published during the Biden Administration, including: the final rule published September 21, 2023, 鈥淪treamlining Medicaid; Medicare Savings Program Eligibility Determination and Enrollment鈥�; the April 2, 2024 rule, 鈥淪treamlining the Medicaid, Children鈥檚 Health Insurance Program, and Basic Health Program Application, Eligibility Determination, Enrollment, and Renewal Processes鈥�; and the May 10, 2024, final rule, 鈥淢inimum Staffing Standards for Long Term Care Facilities and Medicaid Institutional Payment Transparency Reporting鈥�
  • Adding provider screening requirements
  • Increasing frequency of eligibility redeterminations for certain individuals and adding enrollee address verification policies
  • Reducing expansion FMAP for certain states that provide Medicaid coverage to undocumented individuals and families, regardless of the source of funding
  • Preventing certain spread pricing arrangements in Medicaid between states and pharmacy benefit managers
  • Restricting funding for certain essential community providers that furnish family planning 杏吧视频, reproductive health, and related healthcare 杏吧视频
  • Ending a temporary increased FMAP to new states adopting Medicaid expansion, revising policies governing the use of Medicaid provider taxes, and payment limits for state directed payments

Committee Markups

Various other House committees have begun holding markups for the reconciliation package. The Committee on Ways and Means conducted its markup on May 13, 2025, to discuss its  of the reconciliation bill, which involves $4.5 trillion in deficit increases. The initial Ways and Means proposal did not include many significant healthcare proposals, but on May 12, 2025, the committee released a substitute amendment that includes several changes that would affect private insurance coverage and Medicare. Key provisions include:

  • Changes to Medicare and ACA premium tax credit (PTC) eligibility requirements related to immigration status
  • Improvements to ACA PTC eligibility verification checks
  • Changes to Health Savings Account flexibilities
  • Codification and renaming of individual coverage health reimbursement accounts, which serve as a defined contribution that employees can use to purchase insurance in the individual market

Other committees, such as the Education and Workforce, Judiciary, Armed Services, and Homeland Security Committees, also have conducted markups and approved their respective portions of the reconciliation bill.

Connect With Us

These steps are part of the ongoing process to finalize the budget and reconciliation legislation for FY 2025. Our federal policy experts with Leavitt Partners and across HMA are monitoring the legislative policies and ongoing negotiations in Congress and with the administration. They work with healthcare organizations and industry to plan for the range of scenarios and policies Congress is debating.

For more information about the impact of these policies, contact our featured federal policy experts聽below.

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Health Policy in Maryland Amid Fiscal Uncertainty

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The 2025 Maryland General Assembly session closed on April 7th. While the budget deficit consumed a large portion of legislative bandwidth, there was significant action on health-related programs, including supporting the implementation of the Centers for Medicare & Medicaid Services (CMS) All-Payer Health Equity Approaches and Development (AHEAD) Model, expanding access to care, paving a way for Prescription Drug Affordability Board (PDAB) expansion and increasing access to affordable insurance. The AHEAD Model is an innovation in healthcare finance that drives improvements in population health through increased investments in activities likely to improve health outcomes, and benefits hospitals that participate by providing stable funding through hospital global budgets.

Budget Deficits and Federal Funding Fears Limited New Spending

After intense debate and discussion, House and Senate fiscal leaders reached a budget agreement on the final day of session. From the beginning, significant projected general fund shortfalls existed in the current and future fiscal years. Primarily these shortfalls were due to higher than anticipated Medicaid enrollment and growth in obligations to fund K-12 education under the Blueprint for Maryland鈥檚 Future. Through a combination of actions including budget cuts, increasing hospital assessments to cover Medicaid costs, shifting costs to counties, and new taxes and fees, the budget passed along party lines. Due to concerns about the potential harm from federal budget cuts, particularly in the Medicaid program, the final plan includes a trigger provision requiring the Governor to engage lawmakers on solutions should federal funding to the state fall by $1 billion.  

The State Readies for the AHEAD model

Despite fiscal concerns, the General Assembly established two new funds, the Population Health Improvement Fund, and the Maryland Primary Care Program Fund, to support the implementation of the AHEAD model. Revenues to both funds are collected through an increase in hospital assessments.

  • The Population Health Improvement Fund will support efforts to reach statewide population health targets under the AHEAD model.
  • The Maryland Primary Care Program Fund will support the implementation of a Medicaid advanced primary care model and support primary care providers through investments in reimbursements for evaluation and management codes, care management fees to eligible practices, and quality incentives.

Supporting Access to Care

Lawmakers passed several bills aimed at increasing or protecting access to care.

  • The Preserve Telehealth Access Act of 2025 makes permanent provisions of law requiring reimbursement parity between telehealth and in-person 杏吧视频 and includes 鈥渁udio-only鈥� 杏吧视频 as telehealth under certain circumstances.
  • Legislation passed to address children and youth boarding in hospital settings beyond medical necessity. The bills define a 鈥減ediatric overstay鈥� and requires the Maryland Department of Health and the Maryland Department of Human Services to establish a pediatric overstay coordinator in each department to ensure that each patient is served in the least restrictive environment.

Several pieces of legislation passed to address behavioral health and substance use disorders including:

  • Eliminating the prohibition on using 9-1-1 trust fund dollars to support the 9-8-8 suicide prevention hotline, improving coordination between 9-1-1 and 9-8-8.
  • Establishing a buprenorphine training grant program to support training paramedics to administer the drug.
  • Further delineating uses of opioid restitution fund dollars and creating additional reporting requirements for the Office of Overdose Response.

Since the Dobbs decision, rolling back protections for abortion care in states, Maryland has been on the forefront of protecting reproductive freedom. Legislation passed establishing the Public Health Abortion Grant Program and Fund to support eligible organizations providing equitable access to abortion care 杏吧视频.

Regulating Prescription Drug Prices

Maryland established the Prescription Drug Affordability Board (PDAB) in 2019 joining ten other states in regulating the cost of prescription drugs through affordability boards. The goal of PDABs is to address high prescription costs by setting upper payment limits (UPLs) for drugs that cause or are likely to cause affordability challenges. Currently, Maryland鈥檚 PDAB is authorized to set UPLs for prescription drug products purchased by or on behalf of a unit of state or local government.  Legislation passed creating a pathway for the PDAB to set UPLs on prescription drug products paid for by additional state regulated payors if the board determines that the product has led or will lead to an affordability challenge.

Access to Affordable Health Insurance

The General Assembly made permanent the State-Based Young Adult Health Insurance Subsidy program and requires the Maryland Health Benefit Exchange in consultation with the Maryland Insurance Commissioner to establish and implement a state-based health insurance subsidy program for all individuals. The Maryland Health Insurance Protection Commission was reestablished to monitor federal changes that could impact coverage.

Change in Leadership at the Maryland Department of Health

During the busy legislative session, Secretary Laura Herrera Scott, MD, announced she was stepping down from her position as leader of the Maryland Department of Health. Former CMS administrator, Meena Seshamani, MD, was announced as Dr. Scott鈥檚 successor and sworn in on April 9th. Secretary Seshamani will be tasked with leading the transition from Maryland鈥檚 Total Cost of Care model to the AHEAD model and leading the department through a period of uncertainty and expected budget shortfalls.

Maryland State of Reform Conference to Cover Many of these Issues

These issues and more will be covered at the on June 12th at the Baltimore Marriott Waterfront. The day will include a panel of legislative leaders as well as sessions focused on the AHEAD Model, value-based care, behavioral health, public health, and prescription drug costs.

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Governor Asa Hutchinson Announced as Keynote Speaker at HMA 2025 Conference

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We鈥檙e excited to welcome former Arkansas Governor Asa Hutchinson as the keynote speaker at the 2025 HMA Conference October 14-16 in New Orleans, LA.聽 Governor Hutchinson brings over 40 years of leadership in law, national security, and public service. As the 46th Governor of Arkansas (2015鈥�2023), he championed innovation in maternal healthcare, initiating programs and policies focused on improving maternal health outcomes during his time in office. He established the Maternal Life360Home program, expanding access to home visitations and intensive care coordination 杏吧视频 for women with high-risk pregnancies and for children after birth, and improving the safety and wellbeing of children in foster care. He launched the Healthy Active Arkansas program, a 10-year plan to encourage schools and businesses to promote healthier eating and more activity.

His prior federal roles include Drug Enforcement Agency (DEA) Administrator, the first Under Secretary for Border and Transportation Security at the Department for Homeland Security (DHS), U.S. Congressman, and the nation鈥檚 youngest U.S. Attorney. We鈥檙e excited to welcome his perspective on advancing health outcomes across America.

In keeping with changes being made at the federal level affecting all aspects of the healthcare system, Governor Hutchinson will be discussing “The Policy and Politics of Making America Healthy.” In his address, he will share聽insights from his tenure in Arkansas, his perspective on effective health policy development, and the challenges to implementation at both state and federal levels. Join us for what promises to be an enlightening session as he explores the evolving relationship between federal and state governments and the opportunities for innovative health policy development that gives states more flexibility.

Don’t miss this opportunity to hear from one of our nation’s respected political leaders on issues that directly impact our industry and the health of Americans.

Date: October 14-16, 2025

Time: 8:30 a.m.

Location: Four Seasons New Orleans

Following the Governor鈥檚 talk, you will join with industry leaders to discuss new directions in payment and financing of publicly funded healthcare programs, community-level strategies designed to meet the needs of special populations, tailwinds driving the expanding universe of digital health policies, and innovations to strengthen access to behavioral health 杏吧视频. Come for the informative plenary sessions and workshops, explore strategies for navigating changes in funding, access, and coverage to ensure success in a shifting environment, and expand your network with federal and state policymakers, healthcare providers, insurers, philanthropists, and C-suite industry leaders. 

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Empowering Healthcare Leaders: Forging 杏吧视频 and Collaborations at the National Medicare, Medicaid, and ACA Marketplace Event

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As new federal priorities unfold鈥攑articularly for Medicare, Medicaid, and the Affordable Care Act (ACA) Marketplace鈥攈ealthcare stakeholders must anticipate and adapt to dramatic changes in funding, regulatory requirements, and technological advancements. 

In light of these shifting tides, you won鈥檛 want to miss 杏吧视频 (HMA), 8th National Conference, , October 14-16, 2025, in New Orleans, LA. The HMA event will feature timely topics with insightful speakers who are at the center of decision making in government, healthcare service delivery, philanthropy, and industry. 

The conference will inspire thought-provoking conversations that will prepare you to navigate the rapidly changing healthcare landscape. The sessions will provide context for big ideas and workshops that will delve deeper into policy, strategy, and operations. Examples include:  

  • The Policy and Politics of Making America Healthy聽
  • When the Ground Shifts: Publicly Financed Health Coverage and Policy in Motion聽聽
  • Where Is Disruption Poised to Make Improvements in Healthcare?聽
  • Red, Blue, or Purple:鈥疊uilding Resilient Healthcare Systems to Improve Population Health鈥�

The HMA conference welcomes all healthcare stakeholders. Each year we bring together federal and state policymakers, healthcare providers, insurers, philanthropists, and C-suite industry leaders to explore and discuss cross-cutting healthcare policy and operational issues.  

Networking Opportunities 

In addition to insightful sessions, the conference will offer numerous networking opportunities and . Attendees will have the chance to connect with peers, industry leaders, and policymakers during dedicated networking breaks, receptions, and informal gatherings in the vibrant city of New Orleans. These interactions will provide valuable opportunities to share experiences, discuss challenges, and explore potential collaborations. 

Learn more about the agenda, registration, and sponsorship on the conference site, . For sponsorship information contact Andrea Maresca, HMAIS Managing Director.   

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The Evolving Behavioral Health Delivery System

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During the month of May, HMA is featuring thought leadership and insights around Behavioral Health (BH) and changes within the BH delivery system in the U.S. Along with several presentations happening at NatCon25 in Philadelphia, May 5-7, we want to highlight some of the work done by HMA experts.  Starting us off, Josh Rubin, HMA Vice President, Client Solutions, has spent his career working with BH, intellectual and developmental disabilities, and child welfare service providers. In this post, he discusses the changing BH delivery system, and the issues surrounding the treatment of co-occurring mental health conditions.     

Ever since the 19th century when Dorothea Dix crusaded up and down the east coast encouraging state legislatures to fund state psychiatric hospitals, we have had separate systems for medical and mental health care. I mean Ms. Dix no disrespect, far from it; before her work we simply had no system of care for people with mental illnesses. Her contribution was immeasurable. But in 1963 when President Kennedy signed the Community Mental Health Act, it was an acknowledgement that the 鈥渙ut of sight, out of mind鈥� warehousing of people with mental illnesses in large state psychiatric hospitals was inappropriate and had to end.

Those of us who remember the heady days of the 1960s rightly celebrate the advance this represented in acknowledging the rights of people with mental illness to live in the community, and the opportunity it created for people with behavioral health conditions to build lives of dignity, productivity, and inclusion. And while we ought to celebrate that important advancement, we must nonetheless acknowledge that it maintained a separation between the underfunded mental health system, and a significantly better funded medical system. And thus, the community mental health system in America was built. It was designed to provide mental health care to the roughly 5% of the population that has a serious mental illness (SMI). In the nearly 60 years since, much has been done of which community mental health providers should be proud. We have transformed countless millions of people鈥檚 lives (and those of their families), built new program models, identified and implemented new practices, and built a service delivery system that offers a comprehensive continuum of care for people with SMI.

Unfortunately, that system was not built to address the needs of people with co-occurring mental health and substance use disorders (SUD), which is problematic because nearly half of people with a substance use disorder have a mental illness and nearly half of people with a serious mental illness have a substance use disorder. This is no surprise; the conditions are related. Some people with mental illnesses use drugs to manage their symptoms. Sometimes drug use can cause or exacerbate mental illnesses. In most cases, it is impossible to figure out where a mental illness ends, and a substance use disorder begins, or vice versa.

Yet in the U.S. we have always had separate service systems for these two conditions. Our systems grew up this way because although the stigma of mental illness is bad, the stigma of substance use is worse. While we have frequently been willing to address mental illnesses as health problems, we have long treated substance use disorders as criminal justice problems. We created community mental health centers. We launched a war on drugs.

The federal government provides two separate funding streams for states, one for mental health, the other for substance use disorder 杏吧视频. In many states there are separate agencies overseeing the two conditions, separate funding streams, and separate regulatory structures. Many providers respond to the funding and offer separate programs for one condition or the other.

This systemic failure leads every day to the death of Americans who have co-occurring mental health and substance use disorders but cannot access treatment for the two conditions together. Treatment works, and recovery is possible, but treatment works best when you are able to get treatment for your entire problem.

And just as the mental health and SUD systems were separated, they were both also segregated from the general healthcare delivery system. The stigma of our clients鈥� illnesses attached to us and our service system, so we were largely ignored by the healthcare delivery system and the people who funded and oversaw it.

While we have, as I said, much to be proud of, we cannot ignore the impact of our segregation. Our clients continue to die much younger than their peers. BH-related hospitalizations continue to increase. Overdose deaths and completed suicides, the worst possible outcomes, keep climbing, leaving incalculable suffering in their wake. And the financial costs of BH conditions continue to escalate, falling hardest on the historically underserved and marginalized communities that can least afford them. When America establishes a separate system, it isn鈥檛 equal; being ignored has consequences.

The good news? BH is not being ignored any longer. The bad news? BH is not being ignored any longer.

Healthcare policymakers have finally awakened to the reality that they will not be able to achieve their goals of better outcomes, lower costs, and improved customer service unless they address the BH needs of their populations. They are figuring out that everyone needs behavioral healthcare, and that a dichotomy that focuses BH care only on those with the most significant BH issues is ill serving. They are coming to understand that the skills, capabilities, and expertise of community BH providers have extraordinary value. It鈥檚 nice to be acknowledged and invited to help.

But it鈥檚 not all good news, because while being ignored left us underfunded and disrespected, it also protected us. Now that hospitals (which have been buying up outpatient practices at a remarkable pace) have started opening up BH 杏吧视频, we must compete with their deep pockets. And private equity (with even deeper pockets) has increased the pace at which they are acquiring BH providers, forcing additional competition on us. We are not even safe from our own phones. 10,000 mental health apps in the app store offer our clients a totally different paradigm for care, much of it lacking any evidence-based foundation. This makes it more dangerous for our clients, not less competitive for BH providers.

This environment requires fundamental changes in the way BH providers operate. We need new models of care that better meet the needs of the people we serve. Certified Community Behavioral Health Clinics (CCBHCs) are a step in the right direction, but they鈥檙e not a significant change in the service delivery model. If you look at the history of the BH system in America, from Dorothea Dix through today, you will see that the movement has been consistently in the same direction 鈥� inward. We have moved out of the hospitals in the countryside into clinics in the neighborhood. We have slowly chiseled away at the barriers dividing mental health from substance use disorder 杏吧视频. We have patiently worked to integrate with our health care colleagues. Now things are accelerating, and the pace of change is scary, but we should embrace the opportunity. We have a once in a lifetime chance to build something new, better, more effective.

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NATCON 2025 Updates – Using Applied Improv to Strengthen Behavioral Health Case Management

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HMA consultants are participating on four panel sessions at NatCon25 in Philadelphia, May 5-7. In this blog, HMA Principal Suzanne Daub offers a peek at her session topic and explains how improvisation is being used in behavioral health.

In the fast-paced, high-stakes world of behavioral health, case and care managers are often the steady bridge between crisis and stability, support and recovery. Yet the complexity of their roles鈥攏avigating systems, engaging clients with diverse needs, adapting to change in real-time鈥攔equires more than clinical knowledge. It calls for presence, empathy, adaptability, and clear communication. These are exactly the skills honed through applied improvisation.

Several years ago, I attended a national healthcare conference and found myself in a session on applied improvisation for medical professionals. I expected a few communication tips. What I experienced instead was a transformative, embodied approach to learning that blended empathy, collaboration, and spontaneity in a way that felt deeply relevant to behavioral health. I knew immediately: this belongs in our field.

That session sparked my own journey. I began formal improv training, developed a personal improv practice that I鈥檝e now sustained for over five years, and eventually became a certified trainer in applied improvisation for healthcare professionals. Since then, I鈥檝e been focused on bridging this work into behavioral health鈥攅specially to support case and care managers, who often work at the emotional and logistical front lines of client care.

What Is applied improv? Applied improvisation takes the tools and principles of theatrical improv鈥攍ike active listening, collaboration, spontaneity, and 鈥測es, and鈥� thinking鈥攁nd uses them in professional, non-performance contexts to strengthen human interaction. It鈥檚 grounded in neuroscience, play theory, and experiential learning.

In medical training, applied improv is used to support communication, teamwork, leadership, and emotional resilience. It helps providers stay grounded in the face of uncertainty, build trust with patients and teams, and respond rather than react. Academic medical centers, residency programs, and interprofessional training teams are increasingly turning to improv to improve quality of care and reduce burnout.

Applied improv is still emerging in behavioral health, but momentum is growing. Innovative programs are using improv to support:

  • Engagement in developmental disability 杏吧视频 where play-based, nonverbal, and responsive communication is vital.
  • Reducing isolation among older adults and dementia caregivers through shared storytelling, and connection-building.
  • Substance use disorder recovery by helping individuals rediscover joy, flexibility, and authentic connection in group work.
  • Supervision and team development where role-play and real-time scenarios help staff practice challenging conversations and build peer support.

For case and care managers in behavioral health, applied improv can help:

  • Enhance engagement, improve presence, listening, and rapport-building with clients across cultures and abilities.
  • Build comfort with unpredictability and navigating uncertainty 鈥攅ssential when managing client crises or changing systems.
  • Foster collaboration and trust in interdisciplinary teams.
  • Bring joy, presence, and creative reset鈥攖ools we all need to stay grounded, prevent burnout and foster resilience.

If you’re attending NatCon25, I invite you to join our interactive workshop: 鈥淚mprov in Behavioral Health: Strengthening Empathy, Collaboration and Adaptability,鈥� where you鈥檒l gain hands-on tools, and leave with a new lens on what it means to connect.  There are two sessions available, Monday, May 5, 4:30 PM 鈥� 5:30 PM ET or Tuesday, May 6, 11:15 AM 鈥� 12:15 PM ET, both located in room 204C.

Don鈥檛 miss these other HMA presentations at NatCon25:

Monday, May 5, 10:15 AM 鈥� 11:15 AM ET session A3 in room 103B
Harnessing Your Superpowers in Times of Disaster
Breakout Presenter: Monica Johnson, MA, LPC 鈥� 杏吧视频

Monday, May 5 10:15 AM 鈥� 11:15 AM ET session A13 in room 115BC
Building Sustainable Pathways for Behavioral Health Careers
Breakout Presenter: Allie Franklin, MSSW, LICSW 鈥� 杏吧视频

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Preparing for Change: The TEAM Model and what Medicare鈥檚 2026 Inpatient Proposed Rule Means for Hospitals

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This week, in our In Focus section, 杏吧视频鈥� Medicare experts review the changes to the Center for Medicare and Medicaid Innovation鈥檚 (CMMI)  proposed in the Fiscal Year (FY) 2026 Medicare Hospital Inpatient Prospective Payment System (IPPS) and Long-Term Acute Care Hospital (LTCH) Proposed Rule (). The IPPS proposed rule, released April 11, 2025, maintains the model with no changes to the timeline, participants, accountable care organization overlap policies, or required episodes.

While most changes are technical in nature, involve minor methodological tweaks, or seek to align with the Trump Administration鈥檚 policy priorities, stakeholders should continue to assess their readiness and prepare to implement the TEAM model. This is a critical time for healthcare stakeholders to stay on top of this specific proposed rule, the TEAM model, and other federal and state-level developments that are affecting the healthcare system.

This article reviews key aspects of the IPPS proposed rule policies related to TEAM with strategic steps for stakeholders as they continue to prepare for the model鈥檚 implementation.

Background on TEAM

 is a value-based care initiative that requires participating hospitals to manage costs for a range of surgical procedures, including both inpatient and outpatient 杏吧视频. The program involves bundled payments covering all aspects of care from the surgical procedure itself to most post-acute care occurring within a 30-day window following discharge from the hospital. Payments will be calculated based on regional benchmarks, and hospitals will assume financial responsibility for the quality and cost of care provided.

TEAM is scheduled to begin in 2026 with 741 hospitals required to enter into value-based arrangements. The program will affect how hospitals manage five types of surgical episodes in both the inpatient and outpatient hospital setting by shifting more risk to the hospitals themselves. This risk includes not only the cost of the surgery but also post-acute care, including readmissions, complications, and downstream provider 杏吧视频. The goal is to incentivize hospitals to improve care coordination, reduce costs, and enhance patient outcomes.

Proposed Changes to the Model

According to the proposed changes, CMS is moving forward with the five-year mandatory model largely as planned, with minor updates focusing on technical details rather than a significant overhaul. Some of the proposed changes were expected based on the administration鈥檚 policy priorities, including removal of:

  • The Decarbonization and Resilience Initiative
  • Health equity plans
  • Health-related social needs data reporting

Other technical changes address flexibility for newly opened hospitals within TEAM鈥檚 required  the impact of the possible  of the Medicare Dependent Hospital (MDH) program, and modified episode attribution to be based on discharge date, rather than start date. CMS is also still seeking comment on how to finalize the low-volume threshold policy, where hospitals under a certain number of procedures would only have Track 1 (upside only) applied.

Overall, CMS expects that its proposed changes to TEAM 鈥渟hould not result in dramatic shifts to the Medicare savings estimate鈥� of $481 million in savings to CMS across the model鈥檚 five performance years.

Stakeholder Considerations for the Future

Keeping this model largely intact and maintaining the mandatory nature signals that the Trump Administration intends to continue with value-based arrangements and is looking for ways to achieve program savings. A mandatory model will generally achieve a higher level of savings than a voluntary one.

As they prepare for implementation, stakeholders will need to take action, including:

  • Thoroughly reviewing the proposed changes to the TEAM model to understand the changes and their implications to model of care policies and operations, financing, and collaborations with clinicians and care teams outside of the facility. Consider submitting comments to CMS on the proposed changes. Review the聽聽in TEAM.
  • Contextualizing their work to implement this model alongside other pending federal and state policy changes. Stakeholders will benefit from staying on top of developments in this dynamic policy landscape since many pending proposals have financial and structural implications for healthcare providers.
  • Preparing for the mandatory model by developing strategies to manage the financial risk associated with the bundled payments and improving care coordination. This may include modeling hospital payment policies and assessing the implications of the proposed changes.
  • Assessing the system and technology changes and collaborations that will be required to effectively manage risk in the model.

Connect With Us

杏吧视频鈥� (HMA鈥檚) Medicare Practice Group monitors federal regulatory and legislative developments in the inpatient setting and assesses the impact on hospitals, life science companies, and other stakeholders. Our experts interpret and model hospital payment policies and assist clients in developing CMS comment letters and long-term strategic plans. Our team replicates CMS payment methodologies and model alternative policies using the most current Medicare fee-for-service and Medicare Advantage claims data. We also support clients with Diagnosis Related Group (DRG) reassignment requests, new technology add-on payments (NTAP) applications, and analyses of Innovation Center alternative payment models.

For more information about the proposed policies, contact our featured experts聽below.

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