Caravan Health ACOs Accounted for 37 Percent of Shared Savings Among New ACOs in 2016, and More Than 90 Percent are on Track to Reduce Spending in 2017

Caravan Health’s 2016 first year accountable care organization (ACO) customers reduced Medicare spending by more than $28 million, while non-Caravan Health 2016 new ACOs saw total spending increase by more than $23 million. The data is part of The Centers for Medicare and Medicaid Services’ (CMS) newly-public performance year 2016 results for ACOs in the Medicare Shared Savings Program (MSSP).

Earlier this month, Caravan Health announced savings totaling more than $28 million, shared savings exceeding $14 million and higher than average quality achieved by its ACOs in 2016. The $28 million in shared savings represents 37 percent of total shared savings, although Caravan Health’s ACOs represented only 17 percent of total covered lives. Program participation in the Shared Savings model grew from 220 networks in 2013 to 480 last year. According to preliminary data, more than 90 percent of Caravan Health’s ACOs are on track to reduce spending in 2017 as well.

“We give our ACO clients counsel and tools that enable them to improve upon key performance measures, particularly in the vital areas of preventative and chronic care management,” said Caravan Health’s Chief Executive Officer Lynn Barr. “Deploying population health nurses, which can be sustainably funded in an ACO, has contributed greatly to meaningful gains in patient health and our partners’ successful participation in ACO models.”

Caravan Health ACOs in performance year one are performing similarly to ACOs that have been in the program for three years, contributing 37 percent of net shared savings earned by 2016 ACO starts across just 17 percent of total covered lives. Its twenty-three partner ACOs reported perfect (100 percent) quality scores. ACOs that do not work with Caravan Health did not fare nearly as well. For example, spending in those ACOs increased for Medicare members by $22.23 per beneficiary compared to $128.61 saved per patient for Caravan Health customers.

“Providers and organizations contemplating or in the early stages of ACO participation get immediate quality and financial wins by working with our team of specialists,” said Tim Gronniger, Caravan Health’s senior vice president of strategy and development. “The results speak for themselves; achieving ACO success isn’t guaranteed. The support we provide, from financial and clinical to legal and compliance expertise, has proven invaluable in clients’ ability to produce positive results and accelerate their efforts to succeed in population health payment models.”

Recent Resources

CMS Actions in Response to the COVID-19 Public Health Emergency

The Centers for Medicare and Medicaid Services just issued a lengthy set of policy changes to address the growing COVID-19 public health emergency (PHE). These changes will help hospitals and health providers to respond to the crisis more quickly and safely, including many more options for telehealth in Medicare.

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Stop Standing Still: How to Get Started in a High-Performing Caravan Health ACO

Tuesday, September 24 at 9:00am PT / 12:00pm ET

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10 Reasons ACOs Can Fail

Just published in Becker’s Hospital Review – Caravan Health Senior Vice President Tim Gronniger discusses ten reasons Accountable Care Organizations can fail.

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Deadline to join a Caravan-supported ACO is August 3. Speak with a Caravan expert today.

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