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Colorado Hospital Quality Incentive Payment Program and Maternity Bundled Payment Program

Colorado established two value-based payment arrangements with the goal of improving maternity care for Medicaid enrollees. The Hospital Quality Incentive Payment Program is a voluntary payment arrangement for hospitals providing services to Medicaid enrollees. It offers incentive payments to hospitals if they meet certain quality measures, which include measures on maternal health and perinatal care. In 2020, Colorado launched the Maternity Bundled Payment Program. This voluntary model creates a payment incentive for obstetrics providers for performance on cost and quality metrics.

This fact sheet includes an overview of both models, details how the models are designed, describes the payment methodologies, and summarizes the available research on the models’ effect on cost and quality.