Caravan Health is expanding its footprint in the Medicare Shared Savings Program by adding 25 new health systems and four existing ACOs into its collaborative ACO model.
Collaborative ACOs combine providers with anywhere from 500 to 15,000 attributed Medicare lives into a single ACO, which Caravan says mitigates risk and ensures reliable results. Caravan Health says it holds its ACO members accountable using technology and population health methodologies that have helped health systems and physicians who care for underserved populations save Medicare $476 million and earn more than $235 million in total shared savings.
The Kansas City-based company manages six ACOs and more than 600,000 attributed Medicare lives, with its largest collaborative managing more than 260,000 lives. In 2019 and 2020, 100 percent of its model ACO participants received shared savings and are projected to do the same in 2021, the company said. Caravan Health’s has guided 44 health systems into downside risk this year in Medicare’s Pathways to Success Enhanced Track and earn up to 75 percent of shared savings with no fear of losses.
“We provide our ACO partners with coaching, accountability tools, and advanced clinical workflows to close gaps in care, track quality, and alleviate physician burnout. We do everything we can to support primary care practices and system transformation so ACO partners can focus on providing the best quality care, said Caravan CEO Tim Gronniger in a statement. Caravan Health also helps health systems succeed by sharing the potential downside of value-based care. “This assures health care providers they will get their piece of shared savings, not the worry of potentially writing a check for ACO performance losses,” added Gronniger.
Two of Caravan’s new ACO partners, Summit Healthcare of Arizona and Holy Name Medical Center of New Jersey, recently joined one of Caravan Health’s six collaborative ACOs. “As a relatively small health system, we couldn’t have participated without joining with other providers,” said Summit HealthCare CEO Shawn Morrow, in a statement. “Caravan Health enables us to maintain our autonomy and manage governance at the local level while being part of a much larger ACO, increasing our chances of success in value-based health care.”
“Caravan Health is helping us reach quality goals, reduce costs, and track patient care with easy-to-access reports. With its proven ACO management methodology and population health analytics software, we’re looking to improve patient outcomes and keep our Medicare population healthier,” said Randy Tartacoff, M.D., of Holy Name Medical Center in a statement.
In 2021, Caravan expanded its services to help its ACO partners maximize their use of the 340B drug pricing program. More than 90 percent of Caravan-supported providers are recognized as covered entities. Caravan’s ACO and 340B experts use value-based care contract data to give providers more insight into their referral prescriptions and contract pharmacy use, improve workflows, and more than double their 340B discounts. Substantial increases in savings help safety-net providers move into risk and expand primary care services to better support the communities they serve, the company said.
