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 What is Reinvestment?

​The HealthChoices contract between the Commonwealth of Pennsylvania and Northampton County is a full risk contract in which a certain dollar amount (capitation payment) per member per month (PMPM) is paid to the County. In return the County must provide all of the services prescribed by Pennsylvania to any member requiring those services per certain criteria called medical necessity. There is risk if the cost of providing those services exceed the capitation payments. Pennsylvania allows the County to retain savings if the cost of providing the services is less than the capitation payments.
The savings must be placed in a fund called reinvestment. The State requires that the use of such funds complies with certain standards and guidelines. These dollars must be used for services to members in categories approved by the State. Northampton County has been fortunate enough to accumulate some savings since the inception of the program in April of 2001. The County is required to submit specific plans for use of these funds. Stakeholders provide input into the preparation of the reinvestment plan. Reinvestment planning is ongoing because the State allows for expenditure of the funds over a prolonged period of time, unlike the year by year funding allocation experienced by most human service programs.

 What has been done to the present?

​The table listed under Tentative Reinvestment Plans pending DPW approval summarizes the reinvestment plans submitted by Northampton County to DPW since May 28, 2004. These plans are in various stages of approval by DPW. This table presents a three-year plan listing 18 program initiatives in priority order from highest to lowest. Stakeholders provided input for this prioritization at the April 28, 2004 Community Healthcare Alliance meeting. The program needs outlined in this plan were prepared using many sources of input as follows:


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