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SD 3983

MassHealth Delivery System Reform (DSRIP) Quarter Four FY25 Trust Fund Report

194th Legislature (2025-2026)

The bill provides a formal accounting of DSRIP Trust Fund funding, expenditures, and recoupment of unspent dollars from MassHealth reform, detailing payments to hospitals, ACOs, an

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Bill Summary · SD 3983

Summary of Bill SD 3983 (Session 194th) – MassHealth Delivery System Reform (DSRIP) Quarter Four FY25 Trust Fund Report

Purpose and intent

  • The bill presents the required accounting and reporting related to the MassHealth Delivery System Reform (DSRIP) Trust Fund. It consolidates information on monies transferred, credited, or deposited into the DSRIP Trust Fund and outlines how those funds have been expended or sourced.
  • Under Section 2SSSS of Chapter 29, the Executive Office of Health and Human Services (EOHHS) must provide a detailed report to the House and Senate Committees on Ways and Means (W&M) detailing DSRIP Trust Fund activity, including exenditures, revenues, and balances.

Key provisions and content

  • Documentation of expenditures from the DSRIP Trust Fund, including:
    • Payments for services delivered to MassHealth beneficiaries by acute hospitals.
    • Infrastructure payments for Accountable Care Organizations (ACOs) and Community Partners (CPs).
    • Investments in statewide infrastructure and workforce capacity to support reform implementation.
    • DSRIP operations and implementation costs.
  • Summary of revenue sources and timing, including:
    • Federal revenue and the acute hospital assessment.
    • General Fund transfers.
    • Returns of funds from ACOs and CPs (where applicable).
  • Historical context:
    • DSRIP participation began with 17 health care organizations (ACOs) in August 2017 and 26 community organizations (CPs) in December 2017.
    • ACOs began receiving DSRIP payments in September 2017; CPs began in December 2017.
    • Full implementation of ACOs occurred in March 2018; CPs in July 2018.
  • Specific SFY17–SFY24 and SFY25 (Q1–Q4 + AP) expenditure and revenue figures are provided, illustrating:
    • DSRIP payments to ACOs and CPs.
    • Other DSRIP expenditures (e.g., disability access to acute hospitals).
    • Federal revenue and hospital assessment contributions.
    • Unexpended balances carried forward each year, with notes on timing-related variances.
  • Key financial observations:
    • Expenditures and revenues vary by quarter due to timing of payments and revenue receipts, leading to occasional unexpended balances at year-end and potential negative quarterly balances due to timing.
    • At program end, unspent DSRIP infrastructure dollars must be recouped; the report includes the ACO/CP returned funds line to reflect recoupment and the return of associated federal match.

Who is affected

  • MassHealth beneficiaries receive services funded through DSRIP infrastructure and care-delivery payments.
  • ACOs and CPs receiving DSRIP infrastructure and service payments are directly affected in terms of funding flows and reporting requirements.
  • Massachusetts state government departments (EOHHS, MassHealth) and the legislative committees (W&M) are the primary audience for the accounting and oversight.

Procedural and timeline aspects

  • Statutory basis: Section 2SSSS of Chapter 29 requires annual/periodic detailed accounts of DSRIP Trust Fund activity to the Ways and Means committees.
  • The report covers SFY17 through SFY24, plus SFY25 Q1–Q4 and Accounts Payable (AP) period, with a note that DSRIP program operations have concluded and unspent funds must be recouped.
  • The document is dated June 9, 2026, and was placed on file (Action History: 2026-06-11).

Notable quotes or contacts

  • Contact for questions: Sarah Nordberg (Sarah.Nordberg@mass.gov).
  • Signed by Mike Levine, with cc to Kiame Mahaniah, MD, MBA.

Bottom line

  • This bill functions as a formal, detailed accounting of the DSRIP Trust Fund’s funding, expenditures, and reconciliations in the MassHealth program, documenting how reform funds were allocated to hospitals, ACOs, CPs, and related infrastructure, and outlining the process to recoup unspent DSRIP dollars now that the program has ended. It provides transparency to legislators and the public about the lifecycle and financial outcomes of the DSRIP initiative.

Compiled from official sources — confirm details with the bill’s official record.

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