What is DSRIP? It's called the Delivery System Reform Incentive Payment program -- or DSRIP -- and it was designed to fundamentally overhaul Medicaid, a health insurance program for low-income and disabled residents. DSRIP uses federal funding (and a lot of it) to support hospitals as they seek to improve care for Medicaid patients. That's $7.4 billion with a B Several states across the country have already accepted billions of dollars in federal funding to implement their own DSRIP programs.