Second year results demonstrate improvement in health care quality
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Aug. 26, 2015--
Collaborative Health Systems (CHS), a Universal American company
(NYSE:UAM), announced today that nine Accountable Care Organizations
(ACOs) that it formed in partnership with primary care physicians earned
$27 million in shared savings as part of the Medicare Shared Savings
Program (MSSP) for program year 2014. The number of ACOs that qualified
for shared savings tripled compared to last year.
CHS has partnered with primary care physicians to operate 23 ACOs in
2014, the most of any organization in the Medicare Shared Savings
Program. These ACOs include over 4,300 participating physicians serving
more than 270,000 Medicare Fee-for-Service beneficiaries.
For these 23 ACOs, the results showed that:
9 ACOs, serving more than 105,000 Medicare beneficiaries, including
our flagship ACO in Houston, qualified for shared savings totaling $27
million. This compares to $20 million in shared savings paid to ACOs
for the first program year 2012/13, which was longer.
8 additional ACOs achieved savings but did not exceed the Minimum
Savings Rate (MSR). Of those eight, four missed the MSR by less than
These 17 ACOs generated $80 million in total savings for The Centers
for Medicare & Medicaid Services (CMS).
Quality scores improved for all ACOs, which indicates improved
healthcare management particularly for our chronically ill
beneficiaries. For example, hospitalizations in 2014 decreased on
average by 11% for beneficiaries with chronic obstructive pulmonary
disease (COPD) and by 8% for beneficiaries with congestive heart
failure (CHF). For beneficiaries with type 1 or type 2 diabetes, the
quality score measuring hemoglobin levels – an indication that blood
sugar levels are under control - improved 10%.
Richard A. Barasch, CEO of Universal American, commented. “The 2014
results reflect the impressive efforts of our physician partners as they
move to a system in which they will be appropriately rewarded for
positively impacting the quality and cost of healthcare for their
patients. We are pleased to play an integral role in their
transformation to a value-based payment system by providing actionable
data and other tools to deliver real time care coordination and closure
of gaps in care. This is hard work but our physician partners are
getting increasingly comfortable with these activities and we now have
tangible proof of the positive impact they are bringing to the quality
of care and healthcare costs for Medicare beneficiaries. We are also
encouraged by the commitment shown by CMS to the Medicare ACO program in
the final rule for 2016 and beyond. We are excited by our progress and
remain committed to the MSSP program.”
Jeffery Spight, President of Collaborative Health Systems, noted the
company’s performance across the wide range of experience and healthcare
settings of its partners. “This year’s results demonstrate the impact of
the ACO model. From our most experienced physician partners in Houston,
to our newest partners in the Washington, D.C. metropolitan area, to our
partners delivering care in underserved areas of the country through
Federally Qualified Health Centers (FQHCs), we are delighted that
practices in different regions of the country caring for diverse patient
populations generated significant savings and better quality of care.”
About Collaborative Health Systems
Collaborative Health Systems (CHS), a Universal American company (NYSE:
UAM), is a management services organization that partners with primary
care physicians as they move to value-based payment delivery. Our core
belief at CHS is that primary care physicians are in the best position
to coordinate care for their patients in the value-based environment.
CHS provides comprehensive support for its physician partners by
providing actionable data to help coordinate care and helping practices
change behavior to meet the new quality requirements of the value-based
payment system. CHS currently manages 25 MSSP ACOs, with more than 4,200
providers, mostly primary care physicians, covering more than 290,000
Medicare beneficiaries. For more information, visit http://www.CollaborativeHealthSystems.com.
About Universal American Corp.
Universal American (NYSE:UAM), through our family of healthcare
companies, provides health benefits to people covered by Medicare and/or
Medicaid. We are dedicated to working collaboratively with healthcare
professionals, especially primary care physicians, in order to improve
the health and well-being of those we serve and reduce healthcare costs.
For more information on Universal American, please visit our website at www.UniversalAmerican.com.
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Source: Universal American Corp.
Collaborative Health Systems
Sarah Bell, 914-597-2908
Investor Relations Counsel:
The Equity Group
Fred Buonocore, 212-836-9607
Linda Latman, 212-836-9609