The Centers for Medicare and Medicaid Services (CMS) have introduced the ACO Model to redefine the landscape of healthcare management. This innovative approach holds the potential to significantly impact health equity and financial risk. Let’s take a concise look at what is ACO Reach Model & how it’s reshaping the healthcare industry.

2. The Centers for Medicare and Medicaid Services (CMS) have introduced the ACO Model to redefine the
landscape of healthcare management. This innovative approach holds the potential to significantly
impact health equity and financial risk. Let’s take a concise look at what is ACO Reach Model & how
it’s reshaping the healthcare industry.
WHAT IS ACO REACH MODEL?
The ACO Reach Model is all about transforming the way healthcare providers and organizations
deliver care. It emphasizes collaboration and risk-sharing, intending to benefit both patients and
healthcare providers.
ACO REACH’S UNIQUE GOVERNANCE
This Model’s governance structure is a standout feature. It mandates that participating providers
make up at least 75% of the governing body of each ACO. This ensures that healthcare providers
remain at the core of accountable care. With the majority of the governing body being participating
providers, they have the autonomy to make decisions regarding the level of risk they’re willing to
assume for their patients.

3. GAINS AND RISK-SHARING
ACO Reach offers two risk-sharing options: Professional and Global. The Professional option carries a
lower risk-sharing rate of 50%, making it a less risky proposition for healthcare providers. On the flip
side, the Global alternative presents a higher risk-sharing rate of 100%. While it may seem daunting, it
can be advantageous when accountable care is effectively implemented.
With Global risk-sharing, healthcare organizations retain a larger portion of the savings they generate,
as CMS receives a smaller share. This incentivizes organizations to provide exceptional care and take
on higher levels of risk.
ELEVATING HEALTH EQUITY
ACO Model is a game-changer when it comes to addressing health disparities. All participating
organizations must create a plan to identify and rectify health inequalities in their patient populations.
Moreover, organizations serving the most at-risk patients are required to meet higher financial
spending targets, adjusted according to their health equity benchmarks. This approach ensures that
healthcare resources are allocated where they are needed most.

4. COMMITMENT TO TRANSPARENCY
CMS is committed to being transparent about the ACO Model,
ensuring that progress and information are readily available.
The following information will be shared:
•Type of participants and their respective organization
websites.
•The chosen risk-sharing alternative.
•Preferred payment options.
•Enhanced benefits and incentives for beneficiaries under their
care.
LEVERAGING TECHNOLOGY FOR SUCCESS
All in all, healthcare administration is evolving rapidly, and
healthcare providers need to utilize innovative software
solutions like the ACO Reach Model to streamline their
operations. One such pioneer in the development of
healthcare operational software is Persivia, which offers a
reliable partnership for improved healthcare delivery.