February 14, 2019

KANSAS CITY, Mo., Feb. 14, 2019 - Today, Caravan Health announced a groundbreaking new collaboration with community health systems across the country. Together with primary, specialty, and hospital providers, Caravan Health is launching a new Caravan Health Collaborative Accountable Care Organization. This ACO will allow providers to achieve the promise of value-based care and practice transformation with consistent and predictable results. Serving approximately 225,000 attributed Medicare beneficiaries, this is one of the largest ACOs operating in the Medicare Shared Savings Program.

In an ACO, providers work together to provide high quality care and improve cost efficiency. Caravan Health-affiliated ACOs have been national leaders in quality and reducing total costs for Medicare, saving the program $54 million last year and returning $15 million of that to providers in the ACO.

"We are delighted to be part of this new, largest-ever collaborative ACO. This new partnership is a great opportunity for local providers to engage in care transformation and transition to value-based payment with a team of trusted professionals," said Rachelle Schultz, President/CEO of Winona Health, a partner in this innovative collaboration.

CMS recently finalized the details of the updated Medicare Shared Savings ACO Program, titled Pathways to Success, that will soon require ACOs to take responsibility for financial losses within two or three years. This new large organization is designed to get health providers ready for this faster path to risk. 

This ACO's launch grows out of analyses Caravan Health released last year describing how larger size is a key to predictable and sustainable ACO results. The best way for providers to succeed in value-based payment is by working together and scaling up. The published study proved what health insurers have always known – more lives provide the best protection against normal swings in health care costs.

"Caravan Health, along with our provider partners, have found the key to success in this new world of faster two-sided risk," said Lynn Barr, CEO and Founder of Caravan Health. "Especially now that ACOs must take on risk more quickly, it's more important than ever to achieve scale to get predictable and true results. The Caravan Health methodology works for providers, participants, and payers. With our collaborative ACO model, everyone has a voice in governance and health care decisions remain local."

Watch a recent webinar in which Ms. Barr details Caravan's proven methodology that has helped its ACOs lead the nation in quality and savings.

Click here to Watch the webinar

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