Record-Breaking Results: Premier’s Population Health Management Collaborative ACOs Help Achieve Unprecedented Savings

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Key Takeaways:

• A comprehensive population health strategy supports success in value-based care (VBC) models and delivers significant benefits for patients, providers and the healthcare system.
• Premier's Population Health Management Collaborative (PHMC) members helped achieve record Medicare Shared Savings Program (MSSP) savings in 2024, outperforming the national average for high-revenue ACOs and earning over $500 million in performance payments.
• Premier's PHMC Collaborative, advisory services, advocacy efforts, and data and technology solutions help providers accelerate the transition to VBC.

Value-based care (VBC) isn't just gaining traction - it's delivering measurable results. As H.R. 1, the "One Big Beautiful Bill Act" (OBBBA), and other drivers accelerate the shift away from fee-for-service, Premier's Population Health Management Collaborative (PHMC) is showing what's possible.

The Centers for Medicare & Medicaid Services (CMS) recently announced that 476 Accountable Care Organizations (ACOs) participating in the 2024 Medicare Shared Savings Program (MSSP) delivered $2.5 billion in net savings to Medicare. This marks the most successful year in the history of the MSSP, with ACOs continuing to provide high-quality, coordinated care to more than 10 million beneficiaries.

Since 2017, Premier's PHMC members have consistently outperformed the nation in total cost of care models and have been leaders in MSSP since its inception. For Performance Year (PY) 2024: *

• PHMC members earned over $500 million in shared savings (and over $919 million in savings).
• PHMC members earned shared savings at a higher rate than other hospital/health system high-revenue ACOs, 71 percent compared to 61.5 percent for non-PHMC member high-revenue ACOs.
• PHMC members also achieved an impressive average quality score of 84.76, outperforming the national average quality score of 81.53 for all ACOs. PHMC members had standout performance in diabetes and blood pressure control, depression screening and patient experience - areas where MSSP ACOs outperformed non-participating clinician groups.
• Overall, the MSSP achieved a record $4.1 billion in total shared savings payments earned across all ACOs.

As they did in 2023, Premier's PHMC members achieved record savings - demonstrating how collaborative, data-driven strategies can turn momentum into real-world outcomes for hospitals, health systems and the patients they serve. Accounting for 1.7 million attributed beneficiaries in 2024, Premier PHMC ACOs represent one in 10 MSSP patients nationwide - a powerful footprint in advancing value-based care.

The move toward VBC and alternative payment models is reshaping the healthcare landscape, introducing both challenges and opportunities that demand new ways of thinking. For members of Premier's PHMC, the formula for success has been clear: Align around a shared mission, collaborate across peers, benchmark effectively, and leverage data-driven insights to accelerate the transition with stronger outcomes and higher quality.

A foundational element of thriving in Medicare ACO programs is having deep knowledge of the model paired with proactive strategic planning. Premier recently supported more than 20 organizations through MSSP renewal and early-renewal analyses, offering actuarial projections and performance modeling to help them position for long-term success. These quantitative forecasts, combined with strategic guidance, empower ACOs to make informed decisions and maximize opportunities in a changing payment environment.

Equally critical is harnessing actionable data, particularly when it comes to documentation and coding accuracy for reporting and reimbursement. By integrating Premier's Stanson Health HCC clinical decision support with PHMC's robust claims analytics and benchmarking tools, healthcare organizations have created a powerful system to identify opportunities, close gaps and improve performance. Many participants are already realizing meaningful improvements in quality and outcomes across their value-based contracts.

Success also requires a strong policy voice. Premier's advocacy team in Washington, D.C. works side-by-side with PHMC members to interpret regulations, provide feedback and seek to influence legislative changes to strengthen ACO models. In a comment letter responding to the PY2026 Medicare Physician Fee Schedule/MSSP proposed rule, Premier pushed for refinements that will better support providers' success.

ACOs and PHMC members underscore the transformative impact of investing in a comprehensive population health strategy and capabilities in delivering high-quality, cost-effective healthcare:

"These results reflect what's possible when data-driven strategies, peer collaboration and a shared commitment to quality come together. At Advocate Health, we're proud to be transforming care delivery and improving outcomes for the communities we serve. These record savings are more than numbers - they're a testament to the power of purposeful partnerships and the dedication of our care teams." - Dr. Jennifer Brady, Chief Medical Officer for Population Health, Advocate Health

"Our engagement with Premier's Population Health Collaborative has been invaluable. By connecting with peer ACOs facing similar challenges, uncovering opportunities through data reviews and drawing on the expertise of the Premier team, we've achieved success in MSSP while advancing the health of the communities we serve." - Jennifer Moore, President, MaineHealth ACO

Alongside increased market competition, ongoing movement away from acute care settings, margin compression and CMS' push to have all patients in an accountable relationship, now is the time to act.

To help future-proof our members, Premier formed its value-based care/population health team in 2010. Named Best In KLAS in Value-based Care Consulting or a similar category for seven of the past 11 years, this team leverages a unique approach of collaboratives, advisory expertise and technology to meet providers where they are on their journey to population health - supporting over 65 organizations with strategy, operations and performance improvement initiatives.

With a framework for implementing successful population health models across payers, the PHMC offers comprehensive strategy, education and best-practice sharing, analytics and benchmarking services that work in concert to guide members on their transition from volume to value. Regardless of an organization's progress on the journey, Premier can provide the data, insights and advisory expertise necessary to continue advancing.

If you and your organization are interested in learning more about how Premier, the PHMC and our advisory team can support your journey to VBC and population health management, contact Seth Edwards ([email protected]) or Richard Doane ([email protected]).

*Based on Premier's internal analysis of the 55 ACOs that were in the PHMC in 2024.