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MercyOne enters ACO relationship with Signify Health


Iowa-based health system MercyOne announced today it has signed an agreement to participate in a 2023 accountable care organization with Signify Health Inc., a leading health care technology company. The ACO will support MercyOne’s Population Health Services Organization rural providers in their transition to risk-based payment arrangements and seek to better manage total cost of care for Iowa Medicare patients. MercyOne PHSO, which currently operates as a clinically integrated network, will use Signify Health’s unique population health methodologies, in-home services, data and technology infrastructure to advance in value-based care in rural Iowa. As opposed to a fee-for-service model in which health systems generate more income by doing more procedures and office visits, a risk-based payment system allows health systems to share in savings achieved by a clinical network, but also share the risk of losses. Signify Health operates a network of more than 10,000 clinicians across all 50 states and a nationwide value-based provider network. MercyOne will work with independent providers in a Signify-supported collaborative ACO to minimize the statistical variance of savings and losses that smaller ACOs may experience and protect against risk. In 2020 and 2021, 100% of Signify Health’s collaborative ACO participants earned shared savings. “MercyOne PHSO providers are committed to providing high-quality health care and improving cost savings by advancing value-based care,” said Derek Novak, MercyOne PHSO president. “Signify Health is a trusted collaborator that will help us continue to prepare our rural partners for risk-based payment.” Earlier this month, Signify Health announced it had entered into a definitive agreement to be acquired by CVS Health in a deal valued at about $8 billion. In March, Signify Health acquired Caravan Health to further expand its focus on value-based care and population health.

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