CMS launches new direct contracting payment model

CMS on Dec. 3 unveiled the Geographic Direct Contracting Model, a voluntary payment model that aims to improve health outcomes and lower healthcare costs for Medicare beneficiaries in several regions across the country. 

Through the model — dubbed "Geo" — participants will take responsibility for the total cost of care for a portion of Medicare fee-for-service beneficiaries in a specific region. Within each region, direct contracting entities, such as ACOs, with experience in risk-sharing arrangements will partner with healthcare providers and community organizations to better coordinate care. 

"The need to strengthen the Medicare program by moving to a system that aligns financial incentives to pay for keeping people healthy has long been a priority," CMS Administrator Seema Verma said in a news release. "This model allows participating entities to build integrated relationships with healthcare providers and invest in population health in a region to better coordinate care, improve quality, and lower the cost of care for Medicare beneficiaries in a community."

Organizations interested in participating in the model should submit a letter of interest to CMS by Dec. 21. The agency will use the letters of interest to determine the final regions in which CMS will solicit participants. 

More articles on healthcare finance:
8 health systems with strong finances
Tennessee hospital blames involuntary diversion for closure
CMS' outpatient payment rule for 2021: 5 things to know 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars