CMS unveils highly anticipated geographic direct-contracting model

CMS’ Center for Medicare and Medicaid Innovation on Thursday unveiled its highly anticipated Geographic Direct Contracting Model.

The model—dubbed “Geo”—aims to improve health outcomes and lower healthcare costs for Medicare’s fee-for-service beneficiaries across entire geographic regions by encouraging participants to work together to improve care coordination and care management. So-called direct-contracting entities, the Innovation Center’s new name for accountable care organizations, “will implement regionwide care delivery and value-based payment,” CMS said in a fact sheet.

During an exclusive interview with Modern Healthcare before the announcement, CMS Administrator Seema Verma said the model should give participants strong financial incentives to cut costs and boost quality. Unlike the global and professional options, participants would accept full financial risk for all traditional Medicare enrollees in their region. To help participants manage their populations, Geo includes new tools to encourage beneficiaries to seek high-value care.

Full Article