One of the first participants in CMS’ pioneer shared savings program drops out after only a year of participation because of insufficient savings.
Denver-based Physician Health Partners (PHP) said it’s leaving the pilot cost savings program because its overall spending went up instead of down,
The Denver Post reports in a July 17 article.
The practice, which serves more than 25,000 patients and is one of 32 health systems CMS selected to participate in the program in 2012, is opting to join an accountable care organization (ACO). The ACO, the practice says, carries fewer risks but also smaller rewards, The Post writes.
“The switch means PHP will avoid losing money if it misses quality and cost targets as part of the Pioneer Accountable Care Organization program, but it will also keep a smaller share of any savings it creates,” the article states.
But Denver’s PHP isn’t the only practice jumping ship. CMS told the Post seven of the shared savings program participants were dropping out in favor of less risky plans, and worries that it’ll send the wrong message to providers.
However, PHP’s Ken Nielsen, chief executive, offered some perspective on its decision, “One year is short, it's a big ship to turn.”