Texas launches statewide ACO

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Following the lead of Mississippi, Florida and Idaho, the Texas Hospital Association is teaming up with Caravan Health to create Texas' first statewide ACO.

Through the partnership, any THA member hospital can participate in a readiness program for value-based care and then join the Medicare Shared Savings Program under one entity. The ACO will be built on a clinically integrated network, called Value TX Health, which will also be established through the partnership between Caravan and THA.

The statewide ACO seeks to benefit from economies of scale. By banding together through Caravan's model, hospitals can pool patient data and share resources. It aims to pool at least 100,000 Medicare beneficiaries together to reduce statistical variance and achieve shared savings.

The average Medicare ACO covered 43,500 patients in 2018, according to Leavitt Partners.  


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