“Medicare on Thursday announced the launch of a voluntary payment model that will test whether regional, value-based care can improve quality and cut costs across geographic areas.”
“The Geographic Direct Contracting Model, also known as the “Model” or “Geo”, will allow “direct contracting entities” to collaborate with providers and community organizations in a region to better coordinate care and address the social needs of Original Medicare beneficiaries in that region, the Centers for Medicare & Medicaid Services said…”
“Under the six-year initiative, which will begin January 1, 2022, DCEs will own the total cost of care for Medicare fee-for-service beneficiaries in their region. Each DCE will cover a minimum of 30,000 beneficiaries, with no maximum number.”
“Geo requires participants to take full risk with 100% shared savings / shared losses for Medicare Parts A and B services for aligned Medicare FFS beneficiaries in a defined target region.”
“The DCEs – which may include accountable care organizations, health systems, healthcare provider groups, and health plans – will work under two voluntary capitation payment schemes: total or partial capitation…” Read the full article here.
Source: CMS Announces ‘Geo’ Model for Regional Value-Based Care – By John Commins, December 4, 2020. HealthLeaders Media.
