January 29, 2020

Today, Caravan Health announced a groundbreaking new Rural Risk-Free Solution to support rural health systems in the Medicare Shared Savings Program. By 2021, all ACOs in Medicare will be in the Pathways to Success Program, which requires paying back certain higher-than-expected Medicare costs during the agreement period. Caravan understands that taking on this financial risk can be daunting for any provider new to risk-based payment—and next to impossible for rural hospitals and clinics.

Rural health systems are hesitant to take on downside risk for good reason. There are serious health access issues facing rural communities, including widespread hospital closures, provider shortages, long distances and even longer wait times. These pressures make rural providers understandably reluctant to dive into value-based payment without the right help.
“With this new Rural Risk-Free Solution, Caravan Health will give rural providers and communities the boost they need to thrive in value-based health care,” said Lynn Barr, Caravan Health founder and executive chair. “This new initiative is the latest chapter in our strong tradition of supporting rural health. From our earliest days working with rural hospital leaders, to our role in establishing the ACO Investment Model (AIM), we are proud to stand with our rural colleagues and patients.”

With the Rural Risk-Free Solution, Caravan Health will be responsible for 100 percent of the Shared Savings Program performance risk for rural clients in a Caravan-sponsored ACO. This means Caravan’s rural clients would never have to pay money back to CMS resulting from downside risk in ACO participation. To participate, rural clients simply have to remain in good standing in an ACO and execute Caravan Health’s playbook for ACO success. Health providers can visit the Caravan Health website to determine eligibility.

Caravan Health will hold an informative webinar on February 14, 2020 at 11am ET to go over the details of the Risk-Free Solution as well as answer questions.

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