Aledade ACO practices in California earn $31 million in shared savings for 2022

by | Sep 19, 2023 | Portfolio News

In 2022, Aledade Accountable Care Organization (ACO) practices in California achieved significant success by earning $31 million in shared savings. This accomplishment highlights the effectiveness of ACOs in improving healthcare quality while reducing costs.

The $31 million in shared savings is a result of Aledade’s ACO practices in California successfully meeting quality and cost-saving targets set by the Centers for Medicare and Medicaid Services (CMS). ACOs that meet these targets are eligible to receive a portion of the cost savings they generate, which is then shared among participating healthcare providers.

This achievement is significant for several reasons. Firstly, it demonstrates the potential of ACOs to improve healthcare outcomes and reduce healthcare costs. By focusing on preventive care, care coordination, and value-based reimbursement, ACOs can enhance patient care while avoiding unnecessary expenses.

Secondly, the success of Aledade’s ACO practices in California underscores the importance of primary care in the healthcare system. ACOs rely on primary care providers to serve as the foundation of patient care, ensuring that patients receive the right care at the right time.

Finally, this achievement reflects the broader shift in healthcare towards value-based payment models. As the healthcare industry continues to evolve, value-based care and alternative payment models like ACOs are gaining traction as effective strategies to improve healthcare quality, enhance patient outcomes, and reduce costs.

Established in 2014, Aledade is a healthcare company that partners with primary care physicians to establish and manage ACOs. ACOs are groups of healthcare providers who work together to coordinate and deliver high-quality care to patients while controlling healthcare spending. They are designed to shift the healthcare system from a fee-for-service model to a value-based care model, where providers are rewarded for delivering efficient and effective care.

 

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