The Accountable Care Act (ACA) firmly establishes primary care is the foundation of an accountable care organization, creating great opportunity for Independent Physician Associations (IPA’s).
IPA’s that can successfully demonstrate the ability to coordinate and collaborate across the community of care are uniquely positioned to compete and win population health contracts. This capability becomes even more important when it comes to achieving shared savings goals.
Since a typical primary care provider has influence over approximately $10,000,000 worth of downstream spend (including referrals to specialists and diagnostic providers), optimizing referrals is a key factor in both the ability to improve outcomes and eliminating unnecessary costs. Improving the referral process allows an organization to address the underlying cost drivers such as missed prevention opportunities, unnecessary and inefficiently delivered services, and prices that are too high that collectively contribute to over half of this wasted spending.
Having the first mover advantage in your market can mean a significant impact on the volume of lives you are able to contract for, your ability to negotiate fee-for-service increases, and the ability to wield power in negotiations with local health systems. Start demonstrating the level of coordination and communication necessary to win population health contracts today with ICC.