Keckley Report October 7, 2019
Three news items from the first week of Fiscal Year 2020 are pivotal to 2020 plans for healthcare investors, operators and policymakers. They focus on the future of Medicare. Here’s a recap:
ACO Performance: Monday, CMS Administrator Seema Verma announced that the Medicare Shared Savings Program (aka ACO’s) generated $739.4 million in total net savings in 2018. In her Health Affairs blog, she reported that ACOs that took downside risk reduced spending by $96 per patient compared to $68 per patient for ACOs that did not, and ACO’s led by physicians performed better—$180 reduction per patient—than ACOs led by hospital systems ($27 reduction per patient). Notably, Verma noted that CMS’ MSSP overhaul, Pathways to Success, will require providers to take...