Just published in Becker’s Hospital Review – Caravan Health Senior Vice President Tim Gronniger discusses ten reasons Accountable Care Organizations can fail. Caravan Health is the market leader in forming and managing ACOs – and we have seen all of the ways ACOs succeed and fail.
They have to support providers in care coordination and administration. ACOs must institute efficient HCC coding workflows or risk losing shared savings. It’s also critical to keep an eye on the bottom line, to manage care and keep spending below the national Medicare fee-for-service average.

The most important must-have is size – 80 percent of ACOs are just too small to succeed. Smaller ACOs experience savings and losses of 10 -20 percent in any given year simply due to statistical variation in health care spending.

It’s impossible to build a business with that kind of uncertainty. Caravan Health and our innovative model of collaborative ACOs can build organizations with enough lives to cut through the statistical noise and achieve real savings.

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