(a) Each individual DSRIP project and domain must include
a rational monetary value. That value is determined by the performer
within the strictures described in this subsection and the PFM Protocol.
(1) Except as described in paragraph (2) of this subsection,
a hospital performer must ensure that project values comport with
the following funding distribution:
Attached Graphic
(2) A hospital that is exempted from Category 4 reporting
may allocate the Category 4 funding to Categories 1, 2, or 3.
(3) A non-hospital performer must ensure that the project
values comport with the following funding distribution:
Attached Graphic
(4) A Category 1 or 2 DSRIP project may be valued at
no more than the greater of 10% of a performer's Pass One allocation
or $20 million in total for demonstration years two through five.
For DSRIP projects conducted under the collaboration options, the
project may be valued at no more that the greater of the sum of 10%
of each collaborator's Pass One allocation or $20 million in total
for demonstration years two through five. For three-year DSRIP projects,
the total value for any pair of Category 1 and 3 or Category 2 and
3 projects may be no more than $20 million for demonstration years
three through five.
(5) Milestones for a Category 1 or 2 DSRIP project
must be valued equally within a demonstration year.
(b) All Category 3 milestones within a demonstration
year must be valued equally beginning with the third demonstration
year. Category 3 valuation is determined as follows:
(1) A performer must assign a minimum percentage of
the sum of the funds originally assigned to all Category 3 outcomes
in the first approved RHP plan to the Category 3 outcomes associated
with each Category 1 and 2 project.
(2) The minimum percentage is determined through the
formula: minimum percentage = avg% x .5, where "avg%" is the total
number of the performer's Category 1 and 2 DSRIP projects divided
by 100.
(3) HHSC may grant an exception to the minimum percentage
requirement if such an exception is necessary for the performer to
retain proportional valuation between Category 3 outcomes and the
related Category 1 and 2 DSRIP projects.
(4) Once the performer determines the percentage of
its available Category 3 funding to assign to the Category 3 outcomes
associated with a Category 1 or 2 DSRIP project, HHSC will allocate
an equal amount of Category 3 funds to each outcome, and also to each
milestone for that outcome in a given demonstration year.
(5) Category 3 funding must be split among "pay for
reporting" and "pay for performance" milestones as follows:
Attached Graphic
(c) For the third, fourth, and fifth demonstration
years, a performer may allocate an added 5% of funding to Category
4 only when the performer reports on the optional domain as it is
described in the RHP Planning Protocol.
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