State Innovation Model: Ohio’s Path to Payment Innovation


In 2013, Governor Kasich convened a CEO-level Advisory Council on Payment Innovation to help transform Ohio from volume-based fee-for-service payments to value-based payments that reward better health outcomes. The council identified experts to assist the state in designing value-based payment models that (1) support patient-centered medical homes and (2) reduce the incentive to overuse unnecessary services within high-cost episodes of care. Together, these models have the potential to benefit up to 90 percent of the state’s population by paying for what works to maintain and improve health while holding down the total cost of care.

In December 2014, Ohio was awarded a federal State Innovation Model (SIM) test grant to implement a payment model that increases access to patient-centered medical homes (PCMH) statewide as well as to implement an episode-based payment model statewide.

OHT Payment Innovation Website

Episode-Based Payment Model

Patient-Centered Medical Home Model