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Delivering Savings for Our Healthcare System

Nov 8, 2023 8:23:51 AM | News Delivering Savings for Our Healthcare System

Providing healthcare over sick care is better for patients and reduces costs in our healthcare system. VillageMD and participants in Centers for Medicare & Medicaid Services’ direct contracting model saved our healthcare system $870 million in gross savings in 2022.

The VillageMD practices that participated in the CMMI ACO model generated $60.8 million in gross savings across nearly 77,000 patient lives. That’s because we focus on helping patients get ahead of disease and illness, limiting the progression of conditions to keep patients out of costly and stressful emergency care settings.

Keeping people healthier longer can be a source of immense savings for the healthcare system. The U.S. spends $4.1 trillion in annual healthcare expenditures, more than 90% on patients with chronic and mental health conditions. We’re bringing down these costs while providing high-quality care, promoting prevention, wellness, and the early diagnosis and consistent management of chronic conditions.

The direct contracting model, now known as ACO REACH, supports healthcare organizations in providing value-based care. It’s an innovative model for transitioning away from traditional fee-for-service (transactional) care toward a patient-centered approach.

  • “These 2022 savings show why it’s essential to prioritize the value of care over the volume of care,” said Tim Barry, CEO and Chair of VillageMD. “When federal models recognize the value that consistency, coordination, and personal trust bring to patients, organizations such as VillageMD are proving that they will deliver meaningful results for our healthcare system.”

  • “Fixing our broken healthcare system is not for the faint of heart. We believe everyone deserves the kind of care you would want for a family member,” said Gary Jacobs, Executive Director of VillageMD’s Center for Public Policy. “We’re encouraging federal policymakers to continue supporting innovative models so organizations on the front lines of the transition to value can continue improving patient lives and achieving healthcare savings. We hope to see growing support in Congress for the Value in Health Care Act, which will support much-needed advanced payment model incentives.”

VillageMD is on a mission to create long-term, trusted relationships between patients and their providers. Innovative federal programs are helping empower providers to focus on delivering better outcomes. VillageMD continues to pursue our founding principle of transforming health care in the United States so that our country can be the global leader in health outcomes regardless of background and income.

Read more from NAACOS (National Association of ACOs): https://bit.ly/474bmZN.