ACOs sounded great on paper – 5,000 lives and you’re in. But many Medicare Shared Savings Program participants are seeing unreliable financial performance even though they're doing everything right. For most providers, the missing piece is scale.

In 2019, Caravan Health launched the nation’s largest-ever ACO, bringing together 125+ providers across 24 states to help hospitals and health clinics reach the critical mass necessary for predictable savings in the ACO program. The 235,000-life ACO allows providers to scale up while keeping their autonomy.

Savings and Losses by ACO Size


Graph of risk adjustment with ACO size

The majority of ACOs are too small to succeed, let alone be prepared to take on downside risk. ACOs with less than 20,000 lives routinely show savings and losses of 10 to 20 percent simply due to statistical variation in health care spending and HCC coding. 

Through Caravan Health collaborative ACOs, 250 hospitals, ranging from four to 1,000 beds, are leading delivery system reform in ways that benefit everyone in the care continuum: 

  • Patients get proactive, whole-person care with increased access.
  • Clinicians get paid more, but do less administrative work.
  • Hospitals better support their communities, while easily offsetting the reductions in per patient revenue.
  • Medicare consistently saves one percent per year on billions of dollars, making Caravan Health ACOs among the most successful and sustainable payment arrangements in Medicare. 

Hear from our team of experts on how the Collaborative ACO model is the future of accountable care.

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