November 10, 2023- VillageMD, A Commercial Healthcare Provider (CHP), or an organization entering the healthcare industry that is changing the way the U.S. receives care, 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.