Baylor Scott & White credits ACO for success in bending cost curve

Dallas-based Baylor Scott & White Health has successfully bent the cost curve due to the success of its ACO, which covers its roughly 46,000 employees and hundreds of thousands of other patients, according to coverage in The Dallas Morning News.

The ACO, the Baylor Scott & White Quality Alliance, began as an experiment for employees. "Our employees were our incubator, and they proved this model could work," Baylor Scott & White CFO Trent Hadley told The Dallas Morning News.

The system estimates the ACO has saved it $400 million on health insurance costs for employees over seven years. During that time, Baylor was able to keep premiums from increasing as fast as national rates.

The ACO covered 713,000 people in 2019 and is expected to cover approximately 815,000 this year. The system contracts with Medicare, Medicaid, Blue Cross Blue Shield, UnitedHealthcare, and directly with employers like American Airlines. Read more here.

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