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 24, 2018

Report on the ACO Investment Model Shows Rural Providers Reducing Costs While Achieving Quality

Report from CMS Notes Caravan Health’s Central Role in Successful Payment Demonstration

ACO

October 23, 2018

Congratulations to our 2018 Population Health Pioneer Award Winners!

Caravan Health is pleased to announce our 2018 Population Health Pioneer Award Winners. On behalf of everyone at Caravan Health, we congratulate you on your service to your community and commitment to excellence in health care.

Events

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

ACO, Policy