Certain characteristics mark ACOs that switch from upside-only risk models to higher-risk tracks, according to a new white paper from Leavitt Partners.
Five things to know:
1. The analysis, which draws from Leavitt Partners Insight's analytics solution Torch Insight, examines what makes ACOs that switch to higher-risk models different from their counterparts.
2. Analysts found ACOs that switch to higher-risk tracks entered Medicare ACO programs earlier. They also had a bigger patient population, as well as more payment contracts than ACOs that didn't switch tracks.
3. ACOs that move to higher-risk tracks often have larger savings, according to Leavitt Partners.
4. ACOs that took on greater risk were more likely to be in highly populated metropolitan areas. While no correlation was found between the average number of provider groups or hospitals and whether ACOs took on more risk, analysts mapped out at least two barriers to assuming downside risk: smaller size and less familiarity with risk.
5. "The distinctions between track switchers and non-track switchers are particularly important in the current healthcare environment as the pressure to provide better quality care while cutting costs is mounting from federal, private and consumer voices," Leavitt Partners analysts said in a news release. "Understanding the characteristics of ACOs that have already made the jump to more risk can provide valuable insights for policymakers and other ACOs."