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When calculating shared savings, Medicare takes into account expenses it anticipates needing compared with historical costs. Regional spending and risk/illness regularity are also considered in the formula and are adjusted accordingly. If actual spending is less than the amount initially anticipated, the difference is classified as “savings� for Medicare.

MercyhealthÃÛèÖÊÓƵ ACO is composed of doctors, hospitals and clinicians who voluntarily coordinate to provide top-notch service in a patient-centered and family-friendly environment. According to the release, this group reaches around 18,000 beneficiaries who receive “safe, high-quality, accessible and affordable care.â€�

In addition to the money saved, MercyhealthÃÛèÖÊÓƵ ACO achieved a quality score of 100% through its participation in the Medicare Shared Savings Program. The federal program focuses on improving health outcomes for beneficiaries, while also maintaining cost-effective practices.

The results of the 2020 report showed MercyhealthÃÛèÖÊÓƵ Medicare expenses averaged $8,967 per beneficiary, putting Mercyhealth in the bottom 15% of nationwide spending among Medicare ACOs.

Vice President Ladd Udy, of Value-based Care and Population at Mercyhealth, said that despite a lower forecast for expenses, the group managed to come out on top.

“They (Medicare) made a significant downward adjustment in their expected spending due to people not accessing care as much during 2020 due to the pandemic, and we still beat that goal,� he said.