University of Michigan Saves $15M Over 4 Years Due to ACO Demonstration Project

University of Michigan Health System has saved more than $15 million on the cost of care over four years due to participation in an a demonstration project that is considered by many to be the precursor for accountable care organizations, showing the model can reap financial benefits, according to a U-M news release.

The savings are the result of the systems' participation in the Medicare Physician Group Practice Demonstration Project. Ten systems participated in the project, serving 223,0203 Medicare fee-for-service patients. The project lasted five years, leaving one more year of data left to analyze.

As part of the project, U-M launched new initiatives and programs, including complex care coordination programs to reduce unnecessary treatments, readmissions, handoffs and wait times. The system also launched a medical home program to coordinate care and transitional care programs to assist patients with discharge information and follow-up activity.

U-M officials said that, due to the program's success, the system has already set up an ACO.

The other physician groups participating in the project are Billings Clinic in Billings, Mont.; Dartmouth-Hitchcock Clinic in Bedford, N.H.; The Everett Clinic in Everett, Wash.; Forsyth Medical Group in Winston-Salem, N.C.; Geisinger Clinic in Danville, Penn.; Marshfield Clinic in Marshfield, WI; Middlesex Health System in Middletown, Conn.; Park Nicollet Health Services in St. Louis Park, Minn.; and St. John’s Health System in Springfield, Mo.

Read the U-M release on the Medicare Physician Group Practice Demonstration Project.

Read more about the demonstration project:

- Insights From the Model for ACOs: Q&A With Harold Dash of Everett Clinic on the Medicare Physician Group Practice Demonstration Project

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