Premier Statement on MSSP ACO Results Last Updated: October 30, 2017
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By Joe Damore, vice president of population health management, Premier

Premier congratulates all of the accountable care organizations (ACOs) participating in the Centers for Medicare & Medicaid Services (CMS) Medicare Shared Savings Program (MSSP) for delivering on the promise of improving health for patients and better managing costs. We applaud the 432 MSSP ACOs, as well as the Next Generation and Pioneer ACOs whose results were released earlier this month.

These are true leaders in healthcare that are succeeding in implementing value-based, wellness-focused care delivery models. Our kudos, in particular, goes to members of Premier’s Population Health Management Collaborative. These ACOs made up 6 percent of all Medicare ACO participants in performance year 2016, yet they generated 11 percent of the savings to Medicare across the MSSP, Pioneer and Next Generation ACO programs. Nearly 75 percent of Premier ACO collaborative members achieved savings to Medicare, compared to 57 percent achieving savings across all Medicare ACO programs. Moreover, 48 percent of Premier collaborative members were able to share in savings compared to 33 percent of all Medicare ACOs nationwide.

With nationwide growth in ACOs and other alternative payment models (APMs), the value-based care movement continues to gain ground in both public and private sectors. While providers are showing success in Medicare ACO programs, we are also seeing them succeed with Medicare Advantage and commercial alternative payment arrangements. When implemented with effective care processes, APMs offer access to bonus rewards, representing a smart business choice for providers.

However, achieving the improvements necessary for shared savings payments is difficult work, requiring aligned incentives and compensation models, standardized processes, the right market conditions, a high-value and committed provider network, and robust population health data and analytics. As these models evolve, providers must take a methodical approach to assessing their readiness to avoid taking on too much risk too soon.

Additionally, we hope CMS will address antiquated policies that impede success and innovation to allow providers participating in APMs additional opportunities for cost and quality improvement in order to ultimately better serve their patients.

— Joe Damore, vice president of population health management, Premier

About Premier Inc.

Premier Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of approximately 3,900 U.S. hospitals and health systems and approximately 150,000 other providers and organizations. With integrated data and analytics, collaboratives, supply chain solutions, and advisory and other services, Premier enables better care and outcomes at a lower cost. Premier, a Malcolm Baldrige National Quality Award recipient, 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.