LTC ACO Receives Positive Reconciliation and Settlement Under the Medicare Shared Savings Program (MSSP)
October 13 2020 - 4:02PM
LTC ACO, the first long-term care sponsored Accountable Care
Organization (“ACO”) in the United States and a subsidiary of
Genesis HealthCare (Genesis) (NYSE:GEN), recently received a
positive reconciliation and settlement under the Medicare Shared
Savings Program (“MSSP”) for the 2019 performance year and as a
result, generated shared savings for the second consecutive year.
During 2019, the Company managed approximately
5,800 Medicare fee-for-service beneficiaries under the MSSP with
annualized Medicare spend of more than $160 million. In 2019, the
MSSP required the LTC ACO to save at least 2.8% of the total
Medicare spend under management to share in up to 62.5% (50%
applicable to the first half of the year and 75% for the second) of
the savings with Centers for Medicare and Medicaid Services (CMS).
In August 2020, CMS notified Genesis that it reached the minimum
savings rate set by CMS required for gain share. As a result, in
the third quarter of 2020, the LTC ACO will recognize MSSP shared
savings of approximately $18.8 million and income of approximately
$17.0 million net of participating provider distributions.
“With more than four years of participation under
the MSSP, we have gained valuable experience driving better
outcomes and improved quality, managing episodic cost and
developing in-house capabilities to predict program performance,”
notes Jason Feuerman, President of LTC ACO. “In fact, we generated
an approximate 19.6% savings rate on costs under management and a
94.5% quality score in the 2019 MSSP performance year. These scores
and quality outcomes reflect the benefits of our collaboration with
dedicated Genesis Physician Services (GPS) physicians and advance
practice providers as well as improved alignment and collaboration
with other participating physicians, creating an environment to
achieve these goals. This alignment is something that has rarely
been accomplished heretofore in the long-term care industry.”
Now contracted with more than 200 non-Genesis
affiliated long-term care facilities and physicians nationally, LTC
ACO is well positioned to improve quality and create a newly
aligned shared savings revenue opportunity for both those serving
long-term care residents.
Going forward, LTC ACO plans to continue to bring
its expertise to non-Genesis long-term care facilities and clinical
providers over the coming year. Participation in the LTC ACO can be
significantly expanded more broadly throughout the long-term care
industry due to its track record of positive patient outcomes as
well as positive financial results.
ABOUT LTC ACO
LTC ACO is a Medicare Shared Savings Program
(MSSP) Accountable Care Organization (ACO) for Medicare
Beneficiaries who reside in long-term care (LTC) facilities. The
ACO’s participating physicians and clinicians work hard to provide
better, more coordinated care to the Medicare Beneficiaries they
treat in the LTC facilities. Medicare Beneficiaries continue to
receive all benefits covered by Original Medicare, from any
Medicare provider of their choice, and their benefits are not
limited because the physician is a part of the ACO. Visit our
website at https://www.ltcaco.com/.
Contact: Lori Mayer Media
Relations 610-283-4995
Genesis Healthcare (NYSE:GEN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Genesis Healthcare (NYSE:GEN)
Historical Stock Chart
From Sep 2023 to Sep 2024