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SD 3987

MassHealth DSRIP Third Quarter FY25 Report

194th Legislature (2025-2026)

The bill requires a detailed MassHealth DSRIP Trust Fund accounting to show expenditures, revenues, and fund status by provider and category through SFY17–Q3 FY25.

Placed on file
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Bill Summary · SD 3987

Summary of Bill: SD 3987 (Session 194th, Massachusetts) – MassHealth DSRIP Third Quarter FY25 Report

Purpose and Intent

  • The bill requires the Executive Office of Health and Human Services (EOHHS) to provide a detailed accounting to the Massachusetts Legislature’s Ways and Means Committees of all activity related to the MassHealth Delivery System Reform Payment (DSRIP) Trust Fund.
  • It aims to document expenditures, revenues, and fund status for DSRIP, including how funds were allocated to hospitals, Accountable Care Organizations (ACOs), Community Partners (CPs), and infrastructure/workforce investments, as well as any operations costs.
  • The report covers SFY17-23, SFY24, and SFY25 Q1–Q3 and explains that DSRIP funds supported ACO/CP programs and care coordination as part of MassHealth reform efforts.

Key Provisions and Details

  • Reports to be submitted by the EOHHS, specifically the MassHealth Office of Medicaid, detailing:
    • Expenditures from the DSRIP Trust Fund, including:
    • Disability access payments to acute hospitals.
    • Payments to ACOs.
    • Payments to CPs.
    • Other expenditures (administrative or program-related costs).
    • Revenues supporting the DSRIP Trust Fund, including:
    • Federal revenue (federal matching funds).
    • Acute hospital assessments (funding source).
    • Subtotal revenue figures.
    • Net financial position and movements:
    • General Fund transfers.
    • Amounts of funds returned (ACOs/CPs returned funds) and associated federal match redemptions.
    • Unexpended balances carried forward (unexpended balance figures for SFY17-23, SFY24, SFY25 Q1–Q3).
  • Clarifies that:
    • Trust Fund expenditures can fluctuate quarterly due to timing of payments to providers, leading to end-of-year unexpended balances.
    • Revenue receipts can vary by quarter, potentially causing negative balances in a given quarter.
    • Infrastructure dollars for ACOs and CPs were allocated prospectively in accordance with approved annual budgets, with final reported expenditures at the end of the DSRIP program.
    • Since infrastructure dollars are restricted to DSRIP purposes, unspent infrastructure funds must be recouped, and any returned funds reflect both the return of funds and the associated federal match.

Who/What is Affected

  • MassHealth beneficiaries who rely on DSRIP-funded services and reforms.
  • Hospitals receiving disability access payments.
  • ACOs and CPs that received DSRIP funding for care coordination, infrastructure, and workforce initiatives.
  • State agencies/functions involved in accounting, auditing, and oversight of DSRIP funds.
  • Massachusetts legislative bodies (House and Senate Ways and Means Committees), which will receive the detailed accounting.

Procedural and Timeline Aspects

  • The document is a reporting requirement under Section 2SSSS of Chapter 29 of the Massachusetts General Laws.
  • The report covers:
    • SFY17-23 (state fiscal years 2017 through 2023) expenditures and revenues.
    • SFY24 (fiscal year 2024) expenditures and revenues.
    • SFY25 Q1–Q3 (fiscal year 2025, first three quarters) expenditures and revenues.
  • The report is dated June 9, 2026, with distribution to the Chairs of the Senate Committee on Ways and Means and the House Committee on Ways and Means.
  • Status: Placed on file on June 11, 2026.

Notable Data Highlights (From Report Outline)

  • DSRIP payments and revenue streams are itemized by category:
    • Disability access to acute hospitals.
    • Payments to ACOs and CPs.
    • Other expenditures.
    • Federal revenue and acute hospital assessments (as revenue sources).
    • General Fund transfers and returned funds from ACOs/CPs.
    • Unexpended balances across SFY17-23, SFY24, SFY25 Q1–Q3.
  • The document emphasizes timing-related variances affecting quarterly balances and the need to recoup unspent infrastructure dollars at program end.

Practical Impact

  • Provides transparency and accountability for how DSRIP funds are used to support MassHealth delivery reform.
  • Helps lawmakers understand the financial performance and status of the DSRIP program, including how funds were allocated, spent, and reconciled with federal matching funds.
  • Informs future policy discussions related to MassHealth reform financing and any residual debt or reconciliations after DSRIP concludes.

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

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