Shared savings programs are appealing in theory, but the incentives are too weak and unpredictable to support a scalable business model for hospitals, said Patrick Runnels, chief medical officer of University Hospitals.
According to the terms of the deal, the initial purchase price of about $250 million will be paid in cash and Signify stock. The Dallas-based company will also make additional contingent payments totaling up to $50 million based on Caravan's future performance.
Zelis highlights how employers, payers, and consumers are integrating digital tools to manage healthcare costs.
In a new study, researchers suggest ACOs are not helping CMS save substantial amounts of money as they were expected to do, so the model should be eliminated. But other experts in the industry disagree, taking issue with the study's methods and conclusions.