New, independent research demonstrates that Banner Health Network is a top performer in the CMS Pioneer model
BHN among eight organizations to deliver significantly lower Medicare spending growth
PHOENIX (Jan. 30, 2014)-- Banner Health Network (BHN) is among a handful of organizations in the country that have conclusively established through first-year success that accountable care organizations (ACO) can reduce Medicare costs. In the report released today by the Centers for Medicare and Medicaid Services (CMS), Banner Health Network was one of two Pioneer ACOs that together achieved 41 percent of the total overall reduction in 2012 spending growth in this nationwide demonstration project.
The research report entitled, The Effect of Pioneer ACOs on Medicare Spending in the First Year, was compiled for CMS by L&M Policy Research, an independent research firm in Washington, DC. This research looks at a different reference population-- the local market versus the national population of Medicare beneficiaries-- to determine the reduction in spending growth among Pioneer ACOs.
BHN’s focus on providing highly collaborative care, especially for chronic, complex patients, was a key to early success. Surrounding at-risk patients with supportive care, in particular during care transitions, was an important strategy that helped to reduce hospital admissions and readmissions, for example. Advanced information technology was another important component of the ACO infrastructure, giving providers more information about the beneficiaries in their care.
“While the basis for this pilot model has merit, we also find that there is potential for changes that will result in far greater savings and better care in coming years,” says Chuck Lehn, Chief Executive Officer for Banner Health Network. “Most importantly we seek elements that would engage beneficiaries in the model as partners in maintaining wellness and managing their care.”
On average, the 32 Pioneers cited in this report produced savings of $20 per member /per month. Banner Health Network achieved an average savings of $50 per member/per month.
BHN is applying this same focus on chronic, complex patients to commercial plans. In addition to participating in the Medicare Pioneer ACO, BHN has developed accountable care relationships with Blue Cross Blue Shield of Arizona, Aetna, Health Net, United HealthCare and Cigna.
About Banner Health Network
BHN is comprised of Banner Health-employed physicians affiliated community physicians; 13 Banner Health hospitals ; Banner Health Centers and Clinics; and other Banner Health services in Arizona. The Network ensures convenient access to Medicare members with more than 2,600 physicians located throughout Maricopa County and into Pinal County.
About Banner Health
Headquartered in Phoenix, Banner Health is one of the largest, nonprofit health care systems in the country. The system manages 24 acute-care hospitals, the Banner Health Network and Banner Medical Group, long-term care centers, outpatient surgery centers and an array of other services including family clinics, home care and hospice services, and a nursing registry. Banner Health is in seven states: Alaska, Arizona, California, Colorado, Nebraska, Nevada and Wyoming.