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What We’re Watching: October 30, 2018


A new report suggests that nearly 34% of payments to healthcare providers were made through alternative payment models (APMs) in 2017. This includes shared-savings, shared-risk, bundled payments and population-based payment models across commercial and federal payment programs. And 12.5% of those payments were for downside risk.

What we’re saying: The popularity of APMs continues to grow, and with payers and retailers getting into the game, it’s just a matter of time before these payment models “ghost” the old fee-for-service system. Nearly 1,300 facilities are participating in the next CMS bundled payment program and we expect the upcoming MSSP final ruling to create even more incentives to join an APM. Meanwhile, our members are achieving savings, quality improvements and outperforming others in these programs.


Last week, a bipartisan group of nine lawmakers gave us goosebumps by calling on CMS to make key changes to its proposed MSSP redesign. The House members urged CMS to rethink two proposals: 1) Reducing the time new ACOs have in shared savings-only models from six to two years, and 2) lowering the shared savings rate from 50% to 25%.

What we’re saying: These proposed changes reflect Premier’s top concerns with the proposed rule. They also build on our work with ACOs in our population health collaborative to ensure that they are able to continue to generate savings for the Medicare program, as well as move the industry toward risk- and value-based care models. Read our comments for more on this.


What We’re Watching is a weekly blog focused on the current events Premier is following and their relevance to the work of Premier and its members.

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