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In the News: October 20-26

Sg2 is dedicated to helping our clients interpret the latest news and trends in health care. Below you’ll find our analysis of this week’s key industry headlines, along with links to related Sg2 resources

CPC Initiative Yields Positive Quality Outcomes, Lackluster Financial Results

Quality results from the second year of the CMS Comprehensive Primary Care (CPC) 4-year multipayer initiative were promising, with 95% of participating primary care practices having met the program’s quality of care requirements. However, financially the initiative roughly broke even, with CMS spending $58M on care management fees and the program generating $57.5M in savings. CPC was designed to strengthen primary care through population-based care management fees and shared cost savings.

Sg2 first discussed care redesign for a value-based world back in 2012 and continues to highlight its importance in improving care and lowering costs. Read our report Reengineering Primary Care for more information and case studies from leading providers.


Beyond Sg2: NEJM Explores the Effects of Medicaid Coverage on ED Use

A recent study by the New England Journal of Medicine found that emergency department use by Medicaid patients remained high for individuals in a second year of analysis through the Oregon Health Insurance Experiment. This high use of the ED was in addition to an increase in physician office visits for these patients. As ED use was persistent over the additional year studied, the authors concluded that the increase in ED utilization was not due to pent-up demand.

The Affordable Care Act and other forces, such as market consolidation and new urgent and emergent health care channels, have continued to impact hospital EDs. Watch our on-demand webinar to learn more about how organizations are changing their view of emergency care and expanding their focus to meet access challenges and value-based care demands.


Beyond Sg2: Chicago’s Diverse Health Care Community to Collaborate to Advance Common Goals

Crain’s Chicago Business reports a new entrant to Chicago’s saturated health care market that will unite a variety of health care entities to collaborate and foster city-wide innovation in health care delivery.  Called the Health Care Council of Chicago, the group counts Walgreens, Aon, Takeda Pharmaceuticals, and UnitedHealthcare among its earliest members.

At Sg2, we believe that pursuing strategic partnerships will allow systems to meet gaps in their Systems of CARE and deliver superior health care across all areas of their business. Read this Sg2 Letter to learn more about the future of strategic partnerships.

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As of February 11, 2016, Vizient, Inc. has completed its purchase of MedAssets Sg2 and spend and clinical resource management segments from Pamplona Capital Management, LLC. MedAssets revenue cycle business will continue to operate as a wholly-owned subsidiary of Pamplona Capital Management LLP.

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