Expanding direct contracts; Is discovery a contrivance? FOMO in Clubhouse, and additional topics covered
The Centers for Medicare & Medicaid Services (CMS) has announced the phasing out of the Geographic Direct Contracting Model (GDCM) and its replacement with the Accountable Care Organization (ACO) Realizing Equity, Access, and Community Health (REACH) Model. This move marks a significant shift in CMS's strategy to improve equity and care management for Medicare beneficiaries.
The GDCM, part of CMS's Direct Contracting programs, was designed to test new payment and care delivery models aimed at improving care coordination and reducing spending for Medicare fee-for-service beneficiaries in geographically defined areas. However, due to a transition to new models that build on the lessons learned, CMS has decided to discontinue the GDCM.
The ACO REACH Model, launched in 2023, is CMS's new approach to value-based care models. It emphasizes equity, access, and community health, reflecting CMS's ongoing commitment to moving away from the Direct Contracting Model and towards more integrated, equity-focused approaches in Medicare program design.
CMS is not resting on its laurels. The agency is continuing to innovate payment models through the ACO REACH Model and other value-based programs like the Shared Savings Program and WISeR (Workforce, Investment, and Support to Expand Rural Care). WISeR, which is currently accepting applications for participation starting 2025, aims to expand and adapt coverage and care delivery models.
The phasing out of the GDCM and the shift towards the ACO REACH Model is a step forward in enabling new entrants to participate as Direct Contracting Entities (DCEs) and providing a new technology and services stack to help DCEs succeed in these models. The list of 51 eligible phase 1 DCEs includes several medical groups, industry players, and new entrants.
Meanwhile, the future of biology is being hotly debated. With the advent of powerful tools like CRISPR-Cas9, there is a growing consensus that biology is shifting towards industrialization. In a conversation with our website's general partner, Dr. Jennifer Doudna, winner of the 2020 Nobel Prize, discussed the maturation of CRISPR and other tools for engineering and interrogating biology.
For those interested in staying updated on the latest developments in biology, technology, and care delivery, our website offers a bio + health newsletter. Subscribers can manage their subscription through our website. Every Monday at 5pm PT, our weekly Bio Clubhouse show "It's Time to Heal" airs, discussing various topics related to these fields. Past conversations can be found on our website.
Todd Park, cofounder and Executive Chairman of Devoted Health, also discussed the shift towards value-based care in the healthcare industry and the need for continued movement towards value-based payment to foster innovation.
In conclusion, CMS's decision to phase out the Geographic Direct Contracting Model and shift focus to the ACO REACH Model signifies a commitment to value-based care models that emphasize equity, access, and community health. The agency continues to innovate and update its programs to improve Medicare delivery and reduce costs.
- Science and technology are playing significant roles in the healthcare industry, as demonstrated by the advent of powerful tools like CRISPR-Cas9, which is being industrialized.
- In the realm of health and wellness, Todd Park, cofounder of Devoted Health, emphasizes the need for continued movement towards value-based payment to foster innovation in the healthcare industry.
- CMS's phasing out of the Geographic Direct Contracting Model and its focus on the Accountable Care Organization (ACO) REACH Model is a step towards investing in value-based care models that prioritize equity, access, and community health.
- For those interested in staying updated on the intersection of biology, technology, and care delivery, there's a bio + health newsletter available, and the weekly Bio Clubhouse show "It's Time to Heal" provides insights on these topics.
