Fiscal Committee accepts $204 million Year 1 award for Go North health program
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Summary
The Fiscal Committee voted to accept Year 1 of the federal Real Health Transformation grant — $204 million — to be received by HHS and passed through to the governor's Go North office; the committee was told the award is part of a five-year program subject to CMS performance monitoring.
The Fiscal Committee voted to accept Year 1 of the federal Real Health Transformation grant, totaling $204,000,000, to be received by the Department of Health and Human Services and passed through to the governor's Go North office, Nathan White, chief financial officer for HHS, told the committee.
"So what's before you, are 2 actions, and the first action is the acceptance of the Real Health Transformation Grama year 1, and the total amount is 204,000,000," White said, describing that HHS will act as a pass-through so the state avoids federal administrative delays.
Committee members were informed the award is a five-year grant and that the state's Year 1 allocation is $204 million. White said future annual amounts are not guaranteed and that the Centers for Medicare & Medicaid Services (CMS) will monitor spending and performance; successful, timely spending could influence future awards.
Senator Waters asked for a program-level breakdown of how first-year funds will be spent, including workforce increases and investments in transportation and home medical equipment. Staff said the approved application and related community feedback are posted on the department's website and that Go North will host a site listing competitive procurements and program details as they roll out. The commissioner told the committee the department would provide further detail and offered to report to the committee next quarter if the Go North website is not yet live.
The committee also asked about staffing and hiring under the state's hiring freeze. Committee members were told Go North was established by executive order and that hiring for Go North positions is permitted under the governor's office; staff estimated roughly 20 Go North positions will be added to administer grants and contracts.
The commissioner described the grant as an investment intended to create —transformative change— in service delivery and financial models, citing development of certified behavioral health clinics and alternative payment models as examples that could improve sustainability after the grant period ends. White said budget period 1 provides about 18 months to spend Year 1 funds; later budget periods will allow longer windows.
Senator Lang moved to approve the acceptance of the Year 1 award and the related accounting unit amendments; Senator Birdsall seconded the motion. The committee voted in favor and the motion was adopted.
Next steps: HHS and the governor's Go North office will post procurements and program details on their websites and the committee requested a report in the next quarter if the Go North site is not yet operational.