In 2007 the West Virginia Bureau for Medical Services was awarded several CMS grants through the Medicaid Transformation Program. Work from these projects led to the creation of the West Virginia Health Improvement Institute. Since its incorporation as a nonprofit organization in 2009, the Institute has led several pilot programs on primary care transformation to medical homes and use of health information technology to facilitate health care improvement. The Institute is currently working with the State to develop a Section 2703 Health Homes Program, leading the Tri-state Children's Health Improvement Consortium (T-CHIC) and acting as the West Virginia Regional Health Information Technology Extension Center (WVRHITEC).
Legislated in April 2013, the West Virginia Public Employees Insurance Act called for the evaluation and administration of programs to improve quality, improve health status of members, develop innovative payment methodologies, manage health care delivery costs, evaluate effective benefit designs, evaluate cost sharing and benefit based programs, and adopt effective industry programs that can manage the long-term effectiveness and costs for the programs at the Public Employees Insurance Agency to include implementation and evaluation of medical homes.