Walgreens Ends Relationship with Two of Three MSSP ACOs, Company Confirms to AIS Newsletter

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Neither of Walgreens’ two MSSP ACO relationships generated shared savings, reports Atlantic Information Services’s ACO Business News.

Retail pharmacy chain Walgreen Co. has ended two of the three Medicare Shared Savings Program (MSSP) accountable care organization (ACO) relationships it began in early 2013, the company exclusively confirms in the January issue of Atlantic Information Services, Inc.’s ACO Business News (ABN).

Walgreens completely severed ties with Marlton, N.J.-based Advocate, a multispecialty physician group, and ended its ACO agreement with Scott & White Healthcare in Temple, Texas. However, the company is opting to continue working with Scott & White on “a number of other joint clinical programs and initiatives,” Walgreens spokesperson James Cohn tells ABN.

Advocate saw its 13,400 attributed beneficiaries’ health care costs rise 4.2% against its MSSP benchmark in its first reporting year, ABN reports. The relationship with Scott & White kept health care costs about even in its first reporting year. Neither MSSP ACO was eligible for shared savings from the Centers for Medicare and Medicaid Services. Walgreens is continuing its MSSP ACO relationship with Diagnostic Clinic in Largo, Fla., which demonstrated 2.1% savings in its first reporting year, although it, too, was not eligible for shared savings.

The company is seeking new partnerships, Cohn tells ABN, adding that Walgreens’ MSSP ACO relationships have helped it to “refine a collaborative model through which we can provide optimum value to patients, providers and payers.”

Visit http://aishealth.com/archive/nabn0115-03 to read the article in its entirety, which also includes analysis and commentary by Tom Merrill, senior analyst at Leavitt Partners.

About ACO Business News
ACO Business News delivers timely news and business strategies on accountable care organizations for physicians and provider groups, hospitals, health plans, pharma companies and their advisers. The monthly newsletter covers the latest industry actions to design and create ACOs, results that are already being achieved by ACO-like entities, the impact of ACOs on health plans and pharma, and HHS regulations and guidance on this provocative new trend in health care. Featuring the pros and cons of various strategies for different types of organizations, ACO Business News is designed to help readers avoid the pitfalls ahead and transform exciting ACO opportunities into winning business strategies. Visit http://aishealth.com/marketplace/aco-business-news for more information.

About Atlantic Information Services
Atlantic Information Services, Inc. (AIS) is a publishing and information company that has been serving the health care industry for more than 25 years. It develops highly targeted news, data and strategic information for managers in hospitals, health plans, medical group practices, pharmaceutical companies and other health care organizations. AIS products include print and electronic newsletters, websites, looseleafs, books, strategic reports, databases, webinars and conferences. Learn more at http://AISHealth.com.

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