Financial Success

Caravan Health helps hospitals improve financial performance by implementing a high-performance population health model.  

Hospitals are often concerned about the financial changes that could come with ACO participation. Our experience shows that that the ACO model is an ideal business model for hospitals willing to invest their networks, delivering near-term returns even apart from shared savings. Driven by increased wellness utilization and market share, Caravan Health partners thrive.

Hospitals joining Caravan Health ACOs in 2015 and 2016 saw patient revenue growth to 2017 of 35% and 20%, respectively.

We also have found the key to reliably getting shared savings: banding together with other organizations into a Collaborative ACO with at least 100,000 lives. Our expertise in this proven model reveals opportunities for small and mid-sized hospitals to achieve the benefits of scale while maintaining independence by working in Collaborative ACOs that mitigate risk. 

At Caravan Health, we benchmark our ACOs against each other and the rest of the country. That discipline drives new models of care delivery that increases outpatient revenues and keeps patients in your network, improving their care experience and your bottom line. 

Caravan Health ACOs 2017 Q4 Savings and Losses

19/23 Caravan ACOs had per patient savings

Benefits of ACO Model

  • Grow wellness revenues by $250 - $500 annually per Medicare patient
  • Maximize MACRA bonuses and quality scores with less effort
  • Generate new revenue through billing for nurse-administered preventive care
  • Protect employed and community physicians from MACRA penalties
  • Earn additional financial incentives for improving quality and lowering costs
  • Receive infrastructure and support to succeed under value-based reimbursement models

95% Confidence in Achieving Shared Savings  

ACO model for financial results

Dollars per patient refers to how much an ACO must save in order to be 95% confident the ACO will achieve shared savings 
The June 2018 MedPAC report, titled Report to the Congress: Medicare and the Health Care Delivery System, supports the notion that hospital revenue can withstand the cost and care management required for successful ACO participation. MedPAC reviewed several studies which showed that, despite concerns about reduced inpatient admissions, most ACO savings result from a reduction in post-acute care rather than reduced inpatient admissions. This is especially important as more and more ACOs are taking on both upside and downside risk.

We did not see a detrimental effect on finances due to decreases in volume. This is the second or third year in a row we did not have to let staff go due to finances. We also were able to provide staff with merit and market increases.

Rich Scheinblum, CFO

Monadnock Community Hospital


Read the New Hampshire ACO Case Study to learn how a group of hospitals more than quadrupled their savings. 

Download the case study