LTC ACO has received a positive reconciliation and settlement under the Medicare Shared Savings Program for the 2021 performance year, earning shared savings of $20.6 million at the maximum enhanced track sharing rate of 75% of gross savings, the Kennett Square, PA-based affordable care organization has announced.
Those savings were shared with participating providers.
LTC ACO in 2016 became the first ACO to serve Medicare beneficiaries who live in long-term care facilities, focusing specifically on the special needs of individuals living with dementia, depression, amputation, developmental or physical disabilities, renal failure or multiple chronic diseases and complications.
During 2021, LTC ACO managed more than 8,000 Medicare fee-for-service beneficiaries under the MSSP, with an annualized Medicare spend of more than $200 million. The ACO said it generated $28 million in gross savings, ranking it 30th in gross savings among all ACOs. Gross savings per beneficiary was $3,500, whereas the other 29 ACOs averaged approximately $593 per beneficiary.
The ACO recently announced that 20 new provider groups joined for 2023.
“The Medicare ACO shared savings program is a vital tool in moving the health system toward increased quality and lower costs,” Jason Feuerman, LTC ACO president and CEO, said in a statement. “2021 was our sixth performance year, and with each year, we’ve gained additional insight and experience, enabling us to execute with predictability and confidence.”
According to the Centers for Medicare & Medicaid Services, the MSSP, through its work with ACOs, saved Medicare $1.66 billion in 2021 compared with spending targets. This year marks the fifth consecutive one that the program has generated overall savings and high-quality performance results, CMS said.
“Looking to the future, we are excited about new clinical initiatives, including introducing comprehensive, coordinated approaches to advanced care planning and palliative care, medication management to reduce avoidable hospitalizations, and enhanced clinical analysis, insights and reporting,” Feuerman said.
