Premier sent a letter to the Centers for Medicare & Medicaid Services (CMS) urging the agency to delay the launch of the Direct Contracting Geographic (Geo) Model and improve its design to increase provider participation in the model. Premier also called on CMS to test aspects of the model in other alternative payment models.
Participants in the model would assume full risk with 100 percent shared savings/losses for all Medicare fee-for-service beneficiaries in a defined target region. Premier urged CMS to:
- Reduce discounts and consider removing any withholds, especially for high-performing providers experienced in downside-risk models.
- Establish a pathway for providers to take on capitation gradually.
- Ensure the bidding process does not disadvantage providers.
- Test voluntary-based, MCO-based, and random alignment in other existing total cost of care models.
- Exclude inclusion of beneficiaries that are aligned to existing ACOs unless the beneficiary voluntarily aligns or the DCE has an arrangement with the ACO.
- Include new waivers and benefit enhancements.
About Premier, Inc.
Premier, Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of more than 4,100 U.S. hospitals and health systems and approximately 200,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, YouTube, Instagram and Premier’s blog for more information about the company.