Primary Care Physician-Led ACOs, in Partnership with Universal American Subsidiary, Generated $57 Million in Savings for Medicare Shared Savings Program

Universal American Corp. (NYSE:UAM) announced today that the Accountable Care Organizations (ACOs) it formed in partnership with primary care physicians generated $57 million in total program savings for the Centers for Medicare & Medicaid Services (CMS) as part of the Medicare Shared Savings Program for program years 2012 and 2013.

In partnership with primary care physicians, Universal American’s subsidiary, Collaborative Health Systems formed 30 ACOs to participate in the Shared Savings Program for program years 2012 and 2013. These ACOs represent over 2,800 participating physicians serving more than 350,000 Medicare Fee-for-Service beneficiaries. In the aggregate, these ACO’s will receive payments of $20 million, part to be paid to physicians and part to defray a portion of the costs that Collaborative Health Systems has incurred.

Of Collaborative Health Systems’ 30 ACOs with start dates in 2012 and 2013, the results showed that:

• 3 ACOs, serving more than 56,000 Medicare beneficiaries and including our flagship ACO in Houston, qualified for savings;
• 7 ACOs, serving more than 80,000 Medicare beneficiaries, generated savings but fell below their Minimum Savings Rate (MSR) required to share savings with CMS;
• 8 ACOs were within 2 percent of their benchmark;
• 8 ACOs were 2 percent or more above their benchmark;
• 4 ACOs will have results released in October; and
• All ACOs met CMS’s quality reporting standards