Being able to explain track decisions to providers, investors, and other health system leaders strengthens the position of ACO leadership and sets up the organization for success.
Most ACOs do not use a sufficiently accurate national assignable trend factor. Even after recognizing the impact of national trend on shared savings, it is important to recognize that it’s still one of many inputs impacting shared savings. ACOs can improve their financials and mitigate risk exposure by proactively managing these inputs through multi-year scenario simulations.
This is the first study to simulate the prospectively and retrospectively assigned beneficiary populations for actual ACOs. Key metrics were evaluated for each of the 322 ACOs during the 2015 performance year. Despite significant differences between prospective and retrospective assignment, neither methodology shows performance bias.
With the Shared Savings Contribution approach, financial impact of practices that implemented care management workflows becomes evident, with the more engaged practices rewarded accordingly. Positive contributing physicians subsidized those who lowered the shared savings of the ACO. Example cases demonstrate potential far-reaching consequences of distribution strategy on long term sustainability of an ACO.