Caravan Health is leading the way in helping health providers make the necessary changes for health care delivery reform success. We have partnered with over 250 hospitals who agree that joining an Accountable Care Organization (ACO) is the best pathway forward for system change. But simply joining an ACO may not be enough.  

The other piece of the puzzle is size. About 80 percent of ACOs have 25,000 or fewer attributed lives. As we showed in a recent piece in Health Affairs, those smaller ACOs have a very big problem – they are just not large enough to overcome statistical uncertainty that leads to random savings or losses. Normal variation of financial results can wipe out shared savings – an outcome that no health provider can afford.   

ACOs of 10,000 or fewer lives may experience random savings or losses of up to six percentage points. This comes to $600 per patient, or $6 million per ACO. That kind of uncertainty is unacceptable. These smaller ACOs have an opportunity to join other providers in a larger, collaborative ACO of 100,000 lives or more for more financial certainty.  

Our video below explains more about the effect of size – and how Caravan Health can help. Collaborative ACOs create greater understanding and control over operational, clinical, and financial performance. Together we can beat the benchmarks.  

To learn more about the future of ACOs, tune into our webinar - Collaborative ACOs: The Future of Accountable Care

Recent Articles and News

October 03, 2018

Caravan Health Comments on Physician Fee Schedule/Quality Payment Program Rule

Read Caravan Health's comments on CMS’s proposed Medicare Physician Fee Schedule and Quality Payment Program rule for the 2019 performance year

October 02, 2018

What to Expect Next from CMS Regarding the Proposed ACO Rule

Although there’s some uncertainty about what the final rule will look like, what is certain is that clinical, hospital, and health system leaders need to understand what’s happening, what to expect from CMS, and when to expect it. To help with that, we identified the key dates and points you need to know below.

ACO, Policy, CMS

September 26, 2018

ACOs in 2018, 2019, and Beyond – Successful Population Health Under Evolving Rules

We’re constantly adapting our strategies to meet the evolving rules and regulatory policies in the health care industry.