ACO or Not, Fairview Builds Shared Savings into All Payer Contracts

He is optimistic that key components of the commercial contracts would work well in a Medicare or even a state Medicaid shared savings model. Fairview leadership presented the model to CMS, and is hopeful that components can be included in the so-called "Pioneer" track unveiled by CMS last week.

"It's not perfectly aligned, but directionally it's going the same way," Moen says.

Many health systems are building coordinated "systems of care" that mimic or parallel certain aspects of the vision behind Medicare Shared Savings. La Crosse, Wisconsin-based Gundersen Lutheran Health System has been rated among the "best values" in all Medicare regions by achieving higher quality and lower cost through a combination of physician leadership and governance, IT investment, integrated delivery and a focus on not-for-profit culture, says CEO Jeff Thompson, MD.

Gundersen's care coordination program has been able to reduce inpatient charges of the sickest 1% of patients from more than $18 million to less than $8 million in three years. The program cares for patients regardless of risk status, whether they are part of the Gundersen's plan or fee-for-service, Thompson says.

Building the blocks for coordinated, high-value systems of care will be the focus for Thompson and Moen next month as they are both among the panel of presenters at the HealthLeaders Media's Rounds event live from Gundersen Lutheran Health System, on June 9. Both will present their lessons and strategies and be available for live feedback during a virtual Q&A session.