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

February 13, 2019

The Power of Data in Health Care Transformation: A Discussion with Rural Health Leaders

At this week’s Rural Health Policy Institute in Washington, DC, Caravan Health, the National Rural Accountable Care Consortium (NRACC), and other rural health experts and advocates gathered for a discussion about the role of data in rural health transformation.

ACO, Policy, Events, CMS

January 30, 2019

Beyond Tracks and Levels – What Elective Options are Available to ACOs Under the New Rules?

This weekly blog post covers more about what ACOs need to know about the recently released final Medicare Shared Savings Program ACO rule.

ACO, Policy

January 16, 2019

What ACOs need to know about the MSSP ACO final rule – Pathways to Success

With CMS recently finalizing the MSSP ACO rule, there is a lot for successful organizations to understand. This is one in a series of blog posts explaining the MSSP ACO final rule in greater detail. If you haven’t already, check out the recent webinar hosted by Caravan Health policy experts.

ACO, Policy, CMS