In 2014, TennCare, the Tennessee Medicaid program, began implementing statewide episode of care payment models under its Health Care Innovation Initiative. The perinatal episode was one of the first models implemented. The goal of the perinatal episode is to reduce variation in costs and reward providers who deliver cost-effective, quality care, and promote patient-centered, high-value health care. The model creates payment incentives for providers to manage costs across the entire episode of care.
This fact sheet includes an overview of the model, details how the model is designed, describes the payment methodology, and summarizes the available research on the model’s effect on cost and quality.