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

August 10, 2018

Proposed Rule for Medicare ACOs Allows Upside-Only Participation With a Gradual Transition to Risk

High performing systems can continue to thrive in Medicare’s ACO program under CMS’s new proposal

Policy, CMS

July 31, 2018

CMS’s Medicare Proposals Make ACOs More Attractive

CMS recently issued several major proposed rules affecting Medicare payments for physicians and hospitals in 2019. Taken as a whole, these rulemaking actions demonstrate a continued strong value proposition for hospital participation in Accountable Care Organizations in 2019 and into the future.

Policy, CMS