Defunct direct contracting model saved Medicare $372M last year

Healthcare DIVE October 25, 2023
Rebecca Pifer

Value-based primary care chains for seniors operated by major retail health players did particularly well, with Amazon’s Iora, CVS’ Oak Street and Walgreens’ VillageMD all notching high net savings.

Dive Brief:

• Organizations in a discontinued Medicare accountable care model saved the program $372 million in 2022, more than five times the prior year, according to recent data from the CMS.
• Direct contracting entities in the Global and Professional Direct Contracting Model, which CMS replaced with another ACO model this year, had a 2% net savings rate on average.
• But there were major outliers among the 99 organizations. Bloom Health, a home-based primary care company in Colorado, notched the best net savings rate of 26.6%, while the worst net savings...

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