Skylight Health Group Inc. (NASDAQ: SLHG), a primary care management group, has entered into a joint venture partnership with Collaborative Health Systems (CHS), a population health management services organization. The two companies will partner to establish a value-based care contracting framework across Florida, Pennsylvania, and Colorado.
Tampa, Fla.-based CHS is a wholly owned subsidiary of Centene Corp. (NYSE: CNC). It currently manages three Direct Contracting entities, seven MSSP ACOs, a Care Transformation Organization, and three Independent Practice Associations.
The primary goal of the partnership is to establish the core necessities of a value-based care program, which includes joint efforts in payer contracting, taking on risk within Medicare Advantage, and population health improvement, including data and analytics supporting care coordination and quality improvement programs. Denver, Colorado Springs, Harrisburg, and Jacksonville will be the initial markets to participate.
Each state’s network of practices will benefit from strategic growth and planning in Medicare fee-for-service ACOs and Medicare Advantage, the companies said. Specifically, the joint venture will benefit from Skylight Health’s Medicare lives served in addition to CHS’ ability to manage downside risk. Together, the joint venture allows further entry into value-based care services as a larger contracting entity providing better clinical outcomes as well as improved patient quality scores and satisfaction.
“Collaborative Health Systems has been at the forefront of profitably executing on value-based care, having generated over $475 million in Medicare savings since 2012,” said Prad Sekar, CEO and co-founder of Toronto-based Skylight Health, in a statement. “This partnership enables us to leverage the scale, infrastructure, and expertise of CHS, allowing us to fast-track our timeline of value-based contracts by approximately 24 months.”