Implementing Managed Care Incentive Program for Healthcare Networks

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Leveraging federal regulations, the Louisiana Department of Health (LDH) has initiated a Managed Care Incentive Program (MCIP) for healthcare networks. Participation is voluntary, with specific metrics and milestones set for a fixed period. Hospitals must join established networks to contract with managed care organizations (MCOs). Incentive payments are tied to achieving targets, with a focus on data validation, analysis, and reporting. LSUHSC-NO plays a key role as a network administrator. Steering committees and quality plans are being established to drive program success, with training and coordination activities planned for August.


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  1. July 19, 2019

  2. Leverages federal regulation to allow LDH to include incentive arrangements in Managed Care Organization (MCO) contracts. Participation is voluntary for MCOs and hospitals For a fixed time (5 years) LDH has established specific metrics and milestones that must be met by participating MCOs and hospitals.

  3. One of two hospital networks formed to contract with participating MCOs on behalf of participating hospitals LSUHSC-NO functions as network administrator and liaison with the MCOs for LQN. Hospitals who elect to participate must be a member of one of the two established Networks Operating Committee has oversight of the operations of the network

  4. Participation in MCIP network contracts Incentive payments are based on each organization achieving specific metrics and milestones Validate, analyze, and report data related to metric achievement Share best practices and protocols Adhere to any protocols and standards approved by the network Meet reporting deadlines to LSUHSC-NO, MCOs and LDH

  5. LSUHSC-NO is establishing Steering Committees for each measure Quality Plan has been developed, awaiting approval Contract negations are ongoing between the MCOs, Representatives of the Network, and LSUHSC-NO Contracts must be fully executed by July 31, 2019 in order to proceed with the MCIP Program.

  6. Schedule training on the 3m and Milliman tools with LDH for Network Members sometime in early August Set-up bi-weekly conference calls to update network members on progress starting August 1 Set-up LQN Steering Committee meetings to begin work on each individual measure starting August 1 Set-up a meeting with LDH and the LQN Informatics Steering Committee to better understand LDH s vision for real time feeds between hospitals, MCOS and PCPs related to ED Utilization and Admissions ASAP Convene LQN network hospitals representatives to facilitate coordinated ED ADT feeds and sharing ASAP

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