Providing Feedback & Future Outlook on ACO REACH Model's Remarkable Success in 2022
From the Desk of Quality Reporting & Process Improvement Office at Dagger Healthcare would like to provide feedback and insights on the recent article regarding the results of the 2022 performance year for the ACO REACH (Accountable Care Organization Realizing Equity, Access, and Community Health) model. The information presented in this article highlights several significant developments and trends that have important implications for the healthcare industry, particularly for health systems, provider organizations, clinical integrated networks, and healthcare professionals alike.
Feedback:
Financial and Quality Performance: The reported results for the ACO REACH model in 2022 are indeed impressive. The generation of approximately $870 million in gross savings and $484 million in net savings reflects the effectiveness of the model in controlling healthcare costs while maintaining or improving the quality of care. The growth in gross savings between 2021 and 2022, as well as the substantial increase in net savings, showcases the model's success in driving improved financial outcomes.
Savings Distribution: The data indicating that 76% of participating Direct Contracting Entities (DCEs) earned shared savings is a testament to the effectiveness of the model and the commitment of healthcare organizations to provide high-quality, cost-efficient care. The distribution of savings from the benchmark discount and shared savings arrangements demonstrates a balanced approach to incentivizing cost control and quality improvement.
Quality Performance: The consistently high average Total Quality Score (TQS) of 99.4% for Standard and New Entrant DCEs and 99.0% for High Needs Population DCEs is a remarkable achievement. This underscores the importance of delivering excellent patient care, and it is encouraging to see that quality metrics were met on both a pay-for-reporting and pay-for-performance basis.
Next Steps:
Adaptation and Learning: Organizations like Dagger Healthcare Solutions should take note of the positive changes and innovations within the ACO REACH model. These results affirm the need to invest in alternative payment models that emphasize accountability for patients' total cost of care and quality. Healthcare providers should be prepared to adapt and learn from the successes of this model as they navigate the evolving landscape of value-based care.
Model Expansion: The success of the ACO REACH model highlights the potential for similar payment models in the future. Healthcare consultants should explore opportunities to work with CMS and other organizations to bring these learnings and innovative flexibilities to other ACO models, such as the Shared Savings Program. The emphasis on patient choice and the absence of prior authorization are positive features that can be applied in various contexts.
Future Outlook:
The results of the ACO REACH model for 2022 provide a promising outlook for the healthcare industry. The significant cost savings, combined with impressive quality performance, demonstrate that accountable care models can drive value and improve patient outcomes. As we move forward, it's essential for healthcare consultants and organizations to remain proactive in identifying opportunities for collaboration and growth within evolving payment models. These results encourage us to continue pursuing innovative approaches to healthcare delivery and payment that prioritize both cost-efficiency and quality.
The collaboration between healthcare professionals, policymakers, and organizations like Dagger Healthcare Solutions will be critical in shaping the future of healthcare delivery in a way that benefits both providers and patients.
