Through the State Health and Value Strategies Program, supported by the Robert Wood Johnson Foundation, NORC at the University of Chicago provided technical assistance to South Dakota Medicaid on options for implementing value-based payment (VBP) strategies to improve quality and cost-effectiveness of care. NORC conducted a targeted environmental scan of state approaches and in-depth case studies of three state VBP models in order to inform the state's future decision-making. Our research was guided by the state's relatively small Medicaid population, rural geography, and existing care coordination efforts.

The models studied included episode-based payments, primary care transformation strategies such as Patient-Centered Medical Homes, accountable care models with shared savings, and managed care arrangements in which contracted health plans engage in VBP. NORC provided the state with comprehensive reports describing the VBP models and associated considerations and met with state officials in person to discuss findings, key takeaways, and potential next steps.