Grants totaling $50 million will be awarded to 20 states to help improve access access to primary medical care.
The Centers for Medicare & Medicaid studies announced the awards, saying the money is an investment in care intended to prevent unnecessary visits by beneficiaries to emergency departments.
The awards are the latest in a trend of trying to encourage patients to seek care early in less expensive settings and obviating the need for care in emergency care settings, which tend to be many times more expensive than routine care.
On Thursday, the federal agency announced awards of $26 million to fund 29 programs in 20 states. The remaining $24 million will be available to those grantees in 2009.
The grants were funded by the Deficit Reduction Act of 2005 with the intent of helping Medicaid programs fund local and rural initiatives to provide alternative healthcare settings for individuals who don't need emergency medical care.
The DRA provided $50 million to be distributed over four years for primary healthcare programs, primarily in rural or other underserved areas as well as programs that work closely with community hospitals.
Organizations receiving grants will use the funds to establish new community health centers, extend the hours at existing clinics, educate beneficiaries about new services and provide for the exchange of electronic health information between facilities.
CMS officials said the grants help align Medicaid efforts with Medicare's value-based purchasing strategies, which are also designed to avoid unnecessary emergency department visits through improved physician care and strategies to decrease re-admissions.
"We are committed to working closely with the states to implement effective reforms to slow spending growth while maintaining access to coverage," said CMS Acting Administrator Kerry Weems.