As we come to the end of the year, we are reflecting on some of the highlights of 2018.
We started the year by welcoming 103 community health systems
to the Caravan Health family. This expanded our proven model of population health management to more than 250 health systems across the country and nearly 500,000 attributed lives. All these health systems follow the Six Imperatives for ACO Success.
We published these principles as a resource for our providers engaged in value-based care as well as those just starting to consider health care transformation. The imperatives, the core of our practice transformation model, include the most important clinical and management practices that we have learned along the way.
In May, we published a groundbreaking study
proving what we had long suspected – one of keys to predictable ACO results is larger size. We worked with an actuarial team to analyze historical ACO data and learned that larger ACOs can be much more confident that their demonstrated savings or losses reflect actual performance. In fact, ACOs must have at least 100,000 attributed lives to be 99 percent confident that their demonstrated results are accurate. These findings lay the groundwork for our 2019 strategy of consolidating attributed lives into fewer, but larger, ACOs.
There was also big policy news from Washington in 2018. In August, CMS proposed
the new “Pathways to Success” rule for Shared Savings Program ACOs. This proposal, which may be published in final form any day now, would require a faster glidepath to risk for most ACOs, among other changes. In August, we responded to the tremendous interest in the proposed rule with an informative webinar
with our policy experts.
Our biggest and best development in 2018 was the outstanding financial and quality results
of our ACOs. Our ACOs led the pack in both quality, with an average score of 94 percent, and savings, with $54 million in total savings and more than $15 million in shared savings. These savings are more than twice our 2016 total savings of $26 million. Of Caravan Health’s 23 ACOs, 19 beat the benchmark and seven earned shared savings.
We capped off the year with the third annual Accountable Care Symposium
in Phoenix, AZ – our most successful symposium so far. Our clients, partners, and staff came together to hear keynote sessions with special guests like Andy Slavitt, former acting CMS Administrator, and providers engaged in the hard work of practice transformation. We celebrated the successes of our clients and partners with the 2018 Population Health Pioneer Awards
at a banquet during the symposium.
All of us at Caravan Health are looking forward to more good news in 2019. We wish you a wonderful holiday season and happy new year.