Innovation in healthcare is accelerating. Seismic changes include adoption of virtual health modalities spurred by the COVID-19 pandemic, disruption in the payer sector by tech-based upstarts, and the expansion of care settings outside the hospital. In this environment, in October 2021 the Center for Medicare & Medicaid Innovation (CMMI) published its innovation strategy for the next decade. The strategy contains valuable indicators of new federal government priorities for stakeholders across the healthcare landscape. In this report, the McKinsey Center on US Health System Reform examines the strategy’s objectives and their potential impact on the healthcare landscape (see sidebar, “About the McKinsey Center on US Health System Reform”).