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 02, 2019

More Myths and Misconceptions Around ACO Success

Don’t Let Misunderstandings about ACOs Hold You Back from Value-Based Care Success There is no better time to join an ACO than right now, but providers must cut through a lot of noise to get to the truth about the benefits of being in an ACO.

ACO

September 20, 2019

Year Two Results for ACO Investment Model Show Rural Value-Based Payment is Stronger Than Ever

Last week, CMS published the second year evaluation of the ACO Investment Model (AIM). AIM provided two years of upfront funds to smaller rural accountable care organizations venturing into value-based payment.

ACO, News, Policy

May 07, 2019

CMS Unveils New Primary Care Value-Based Payment Models to Start in 2020

In late April, CMS introduced five new value-based payment model options that aim to transform primary care and shift providers to take risk on the cost of care for their patients.

ACO, News, Policy, CMS