Mixed Results for Medicare ACOs Offer Partnering Opportunity for Pharma

BURLINGTON, Mass., April 3, 2014 /PRNewswire/ -- Decision Resources Group finds that the Center for Medicare & Medicaid Services' (CMS) recent release on Medicare ACO results, which included specific measures, allows much more detailed analysis versus last summer's early Pioneer results. For businesses looking to partner with ACOs, such as pharmaceutical companies, the specificity allows insight into which ACOs may be successful—both in the long- and short-term. A new Executive Briefing—authored by a team of subject matter experts—discusses the known results, including a look at diabetes and cardiac measures, profiles of ACOs in the Boston and Orange County markets and key takeaways.

Key Facts:

• Decision Resources Group's newest Executive Briefing, entitled "CMS Medicare ACOs: Mixed Results in Year One Mean Opportunity for Pharma," analyzes the CMS release in big picture terms and includes a detailed look at specific insights:
  • Early ACO results were mixed, but not apocalyptic. These early peeks at performance could give pharma an "in."
  • Winners were structurally different, proving that success can be achieved by IDNs, physicians and even by small, rural ACOs dependent on the Advanced Payment Model.
  • Pioneer departures weren't dictated by results—it's clear that quality success doesn't guarantee cost savings or higher risk tolerance.
  • Across all providers, Boston is a market to watch as healthcare reform unfolds.
  • Granular scoring on diabetes and cardiac measures showcase the ACOs that are leading the pack early in population health management.
• The full Executive Briefing can be downloaded here.

Quotes:

• Laura Beerman, Director of Customer Segment Analysis for Decision Resources Group, said: "Now is an excellent time for pharma companies to think about 'adopting' an ACO. To be sure, full-on partnership isn't the right step for every company, especially if its therapeutic areas of concentration don't line up with conditions ACOs are likely to target. But with metric-specific results providing a glimpse into performance, some ACOs might be primed for a pitch on how they can improve—especially if they're hovering at or below the 30th percentile."
• John Bailey, Manager of Customer Segment Data for Decision Resources Group, adds: "The CMS Medicare ACO results offer clues about which ACOs need help meeting specific disease-state quality measures—as well as which structures are most conducive to ACO success. Thriving in the new value-based healthcare landscape will require strong leadership and innovation—and there is a clearly limited window to develop mutually beneficial partnerships in the evolving healthcare landscape. The key question for pharma is: What can your organization offer to an ACO that has maximized efficiencies in both cost and quality?"    

Additional Resources:

• Follow Decision Resources Group's expert analysts as they Tweet on ACOs: #DRGKnowsACOs
• Links to further insights on ACOs, Exchanges and the broader implications of Healthcare Reform can be found here.

About Decision Resources Group
Decision Resources Group offers best-in-class, high-value information and insights on critical issues within the healthcare industry. Clients rely on this analysis and data to make informed decisions. Find out more at www.DecisionResourcesGroup.com.

All company, brand or product names contained in this document may be trademarks or registered trademarks of their respective holders.

For more information, contact:

Chris Comfort
Decision Resources Group
781-993-2597
[email protected]

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SOURCE Decision Resources Group

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