Grantmaking, Research, and Technical Assistance
Initiative Aimed at Improving Nation's Health Care
System to Continue
Foundation Investment Critical as Federal Funding is at Risk

WASHINGTON, August 14 - In July, The Robert Wood Johnson Foundation approved a three-year, $15 million re-authorization of the Changes in Health Care Financing and Organization (HCFO) initiative (www.hcfo.net). This is the fourth renewal since the program's inception in 1989. In its 13 years, HCFO has supported more than 176 research projects examining health care issues, including managed care, market competition, risk adjustment, and defined contribution.

"Given the limited federal funding being devoted to these issues, the Foundation's investment in health services research comes at a critical time-especially as Americans face rising health care costs," says Anne K. Gauthier, director of HCFO. "We are delighted to continue to facilitate the work of the researchers and policymakers we serve."

An assessment of the program found that HCFO research projects have made valuable contributions to ongoing policy deliberations. For example, at a meeting in July 2001, a breakthrough discussion related to data burden became the basis for discussion of policy changes for risk adjustment in Medicare+Choice.

"HCFO has established itself as an important funding niche for the research field," says Nancy Barrand, senior program officer at RWJF. "The program generates information that is useful for decision-makers and helps the Foundation meet its substantive goals in improving health and health care."

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The Changes in Health Care Financing and Organization (HCFO) initiative encourages the development of policy analysis, research, evaluation, and demonstration projects that provide policy leaders with timely information on health care policy, financing, and market developments. The Academy for Health Services Research and Health Policy (www.academyhealth.org) serves as the national program office for HCFO.

Based in Princeton, N.J., The Robert Wood Johnson Foundation (www.rwjf.org) is the nation's largest philanthropy devoted exclusively to health and health care.

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