Variability in Medicare direct contracting savings illustrates promises, pitfalls of value-based care

Healthcare DIVE December 12, 2022
Rebecca Pifer

ACOs’ net savings rates ranged from -29.4% to 29.2% in the 2021 Global and Professional Direct Contracting Model.

Organizations’ net savings in the first year of a Medicare accountable care model varied widely, spotlighting the difficulties of delivering value-based care, where just a few sick patients or a substandard operational model can significantly skew results, experts say.

Direct contracting entities in the Global and Professional Direct Contracting Model had a roughly 2% net savings rate on average, with a few major outliers, according to a Healthcare Dive analysis of recently released data from the CMS.

The goal of the model is to coordinate primary and specialty care, while giving access to enhanced benefits in traditional Medicare, like telehealth visits and...

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