LHS Health Network Chosen for CMS Next Generation ACO Model

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Initiative sets stronger, more challenging measures while offering greater opportunity to improve care.

“It is truly an honor for LHS Health Network, and its fellow participants, to be chosen by CMS, especially given the highly selective nature of the process,” said Alexander J. Hatala, President & CEO of Lourdes Health System and a member of the Network

LHS Health Network, a member of Trinity Health and the Trinity Health ACO, has been selected to participate in the Centers for Medicare & Medicaid Services's (CMS) new accountable care organization (ACO) model. It is called the Next Generation ACO (NGACO) Model.

The model advances the Administration’s healthcare system goals and builds on experience from the Pioneer ACO Model and the Medicare Shared Savings Program. Through this new model, CMS will partner with LHS Health Network and its physician members (via the Trinity Health ACO) to assume higher levels of financial risk and reward. The initiative is expected to result in better health, better care, and lower costs, and to impact individuals as well as whole communities. The other organizations participating in the Trinity Health ACO include Affinia Health Network – Muskegon and Grand Rapids, MI; Health Collaborative of Central Ohio – Mount Carmel Health System – Columbus, OH; Loyola Physician Partners, ACO LLC – Loyola University Health System – Chicago, IL and Summit Medical Group – Berkeley, NJ.

“At Lourdes and at Trinity, we are dedicated to improving the health and wellness of the communities we serve. Participation in initiatives like this allows us to achieve our mission,” said Alexander J. Hatala, President & CEO of Lourdes Health System and a member of the Network’s governing body. “It is truly an honor for LHS Health Network, and its fellow participants, to be chosen by CMS, especially given the highly selective nature of the process.”

“We are pleased to be recognized for our expertise in coordinating care for populations of patients as well as for the readiness of our providers to take the lead and innovate care delivery,” said Jennifer Schwartz, Executive Director, LHS Health Network.

Through the NGACO Model, the Department of Health and Human Services’ is carrying out its goal to tie 30 percent of traditional (fee-for-service), Medicare payments to alternative payment models, such as ACOs, by the end of 2016. By the end of 2018, this threshold rises to 50 percent.

The Medicare Shared Savings Program and Pioneer ACOs began in 2012. With the addition of, the Next Generation ACOs, Medicare ACOs have grown to over 477 nationwide, serving nearly 8.9 million beneficiaries. The results from the past 5 years have demonstrated that as ACOs gain more experience in these programs, their performance improves in providing better quality of care for beneficiaries, while producing savings for taxpayers.

The 21 ACOs participating in the NGACO Model in 2016 have significant experience coordinating care for populations of patients through initiatives, including, but not limited to, the Medicare Shared Savings Program and the Pioneer ACO Model. The NGACO Model participants represent a variety of provider organizations and geographic regions, and were selected by fulfilling specific eligibility criteria outlined in the Request for Applications found at the Next Generation ACO Model web page. These organizations were selected through an open and competitive process from a large applicant pool that included many qualified organizations.

For more information on the Next Generation ACO Model, please visit the Next Generation ACO Model web page at: https://innovation.cms.gov/initiatives/Next-Generation-ACO-Model/ or the Trinity Health ACO web page at http://www.trinityhealthaco.org. For more information about Trinity Health, please visit http://www.trinity-health.org.

About LHS Health Network
Initiated in 2013, the LHS Health Network is made up of primary care physicians and specialists located in Burlington, Camden, Gloucester, and Mercer New Jersey counties. Affiliated with Lourdes Health System and St. Francis Medical Center (Trenton), the LHS Health Network is dedicated to partnering with private and governmental payers to achieve better health and outcomes at lower costs for its communities. The Network partners with Horizon, Aetna, AmeriHealth, and CMS in value-based programs aimed at achieving the highest quality results while reducing the overall cost of health care. With its physician partners, the LHS Health Network currently manages the health of over 60,000 individuals. For more information on the LHS Health Network visit http://www.lhsaco.com.

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Jennifer McGowan-Smith
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