Company Helps ACO Clients Achieve Over $200 Per Patient Worth of Savings; Show Over $54 Million in Savings Total
Caravan Health has analyzed results for its partner ACOs for the 2017 Medicare Shared Savings Program (MSSP), recently published by the Centers for Medicare & Medicaid Services (CMS). In 2017, Caravan Health partners beat industry averages with a total savings of over $54 million, or more than $200 per patient – well above the national average per patient for 2017 and a significant increase over the previous year’s savings of $26 million.
Overall, according to CMS’ results, ACOs are achieving the promise of value-based payment. Of the 472 MSSP ACOs participating in 2017, 284 – more than 60 percent – demonstrated savings. Of those, 159 saved enough money to earn shared savings back from the government. All told, MSSP ACOs saved Medicare more than $1 billion in 2017 by beating their benchmark.
Of Caravan Health’s 23 ACOs, 19 beat the benchmark and seven earned shared savings totaling over $15 million. Caravan Health ACO shared savings ranged between $1.4 and $2.8 million per ACO. While supporting only 3 percent of the beneficiaries in the Medicare Shared Savings Program, Caravan Health ACOs generated more than $39 million in net savings to Medicare, representing more than 10 percent of all net savings (benchmark savings less shared savings) to CMS in 2017.
The results also show patients cared for by partners of Caravan Health are receiving high quality care. The company’s partner ACOs averaged 94 percent on quality measures for 2017. In addition to high average quality scores, 19 of the 23 clients achieved a score of more than 90 percent.
“These results confirm what we have learned through many years in this program – our unmatched population health management leads to great care while saving money for Medicare,” said Lynn Barr, CEO and founder of Caravan Health. “Over a million Medicare patients served by our providers are receiving the best quality care due to the hard work and dedication of our provider partners. Congratulations are in order for our ACO partners for these amazing results.”
Caravan Health has pioneered the Collaborative ACO, a larger ACO made up of independent health systems that is proven to deliver more reliable financial results. If all these ACOs were joined together into one Collaborative ACO, the total shared savings could have been about $23 million – $8 million higher – due to the lower minimum savings rate for larger ACOs and the benefits of scale in delivering consistent results. This savings would have been split among all participants, rewarding them appropriately for the work required to deliver these significant savings to the Medicare program.
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