Positioning a Long-Term Care Company for ACO Partnership
A nationwide senior living provider with more than 250 facilities, including independent living, assisted living, skilled nursing facilities (SNF), and continuing care retirement communities (CCRC)
To help the client evaluate the impact of Medicare ACOs on skilled nursing and CCRCs and develop a strategy for ACO partnership.
Veralon assessed the clients’ current capabilities, to determine their readiness to engage with ACOs.
Based on ACO market penetration in client markets, Veralon determined that about 60% of their SNFs would be impacted by ACOs. Modeling indicated that to maintain market share and financial viability, the provider had to partner with ACOs in some markets. Though ACO partnerships would result in pressure to decrease SNF length of stay, the client could potentially offset this decline by increasing market share from partners.
Veralon developed a framework for prioritizing development of ACO partnerships by market, based on which facilities faced the greatest risk and had the greatest potential opportunity from ACOs.
The client needed to invest in guideline development, care coordination, and quality monitoring tools to respond to potential partnership opportunities. A budget was developed to guide investment in these capabilities.
The provider selected a strategy of responding rapidly and effectively to ACOs that reached out to them, rather than reaching out to ACOs that were not focused on SNF care.
Veralon supported the client and some of its individual facilities in applying to and evaluating potential ACO partnerships. We reviewed potential agreements and advised facilities and the client on partnership terms and conditions prior to their entering into arrangements.