Quality Incentive Payment System

The 2008 Health Reform Law called for the establishment of a statewide system of quality-based incentive payments to health care providers. These payments are sometimes also called "pay-for-performance" incentives. This more coordinated approach to measuring, reporting and paying for health care quality is intended to create stronger incentives for health care providers to improve quality and put more useful and understandable information in the hands of Minnesota health care consumers. The statewide system is called the Quality Incentive Payment System (QIPS). Measures from the Statewide Quality Reporting and Measurement System have been used to develop the system of quality incentive payments to health care providers, based upon achieving target levels of performance or improvement over time.

In 2017, the Minnesota Department of Health conducted its seventh update of the QIPS framework since issuing the initial framework in 2010. This report describes both the methodology and the quality measures included in QIPS.

Minnesota Statewide Quality Reporting and Measurement System: Quality Incentive Payment System Framework – August 2017 (PDF)

Two government agencies were required to implement QIPS by July 1, 2010: the Commissioner of Human Services was directed to implement the system for all enrollees in state health care programs to the extent it was consistent with relevant state and federal statutes and rules, and the Commissioner of Minnesota Management and Budget was required to do the same for the State Employee Group Insurance Program. Due to changes in federal regulations and state legislation, the Department of Human Services and Minnesota Management and Budget have concluded their participation in QIPS. Since developing and maintaining a framework—including updating the methodology and publishing performance goals—was done to serve these two clients, continuing to do so would not serve a purpose. For the foreseeable future, this seventh edition of the framework is MDH’s last formal update. It is possible that future market or legislative changes may prompt MDH to resume updating this framework, potentially with modifications to the methodology.

Past Reports