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Apollo Medical Holdings, Inc. Announces APA ACO Achieved $48.8 Million in Shared Savings from Centers for Medicare and Medicaid Services for 2021 Performance Year
ALHAMBRA, Calif., Jan. 5, 2023 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed," and together with its subsidiaries and affiliated entities, the
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[{"type":"text","content":"ALHAMBRA, Calif., Jan. 5, 2023 /PRNewswire/ -- Apollo Medical Holdings, Inc. (\"ApolloMed,\" and together with its subsidiaries and affiliated entities, the \"Company\") (NASDAQ: AMEH), a leading physician-centric, technology-powered healthcare company focused on enabling providers in the successful delivery of value-based care, today announced that its wholly-owned subsidiary, APA ACO, Inc. (\"APA ACO\") generated $56.2 million in gross savings for the 2021 performance year, resulting in $48.8 million in shared savings from the Centers for Medicare & Medicaid Services (\"CMS\").\n\n \n \n \n \n \n \n\n \nIn 2016, APA ACO applied for and was approved by CMS to participate in the Next Generation Accountable Care Organization (ACO) Model. APA ACO was approved to participate in the All-Inclusive Population-Based Payment (\"AIPBP\") track, which was the most advanced risk-taking payment model. Under the AIPBP track, CMS estimates the total annual expenditures for the Next Generation ACO's patients and then pays that projected amount to the ACO in a per-beneficiary, per-month (\"PBPM\") payment. The Next Generation ACO is then responsible for paying all Part A and Part B costs for in-network participating providers and preferred providers with whom it has contracted. In the program, APA ACO took on the risk for all of Medicare Part A and Part B for contracted and participating providers, meaning that APA ACO worked hand-in-hand with its providers to manage their patient population.\nFor 2021, APA ACO's aggregate benchmark expenditure was $437.2 million, with actual expenditures amounting to $381.1 million, resulting in gross savings of $56.2 million. The Company elected the 80/20 risk arrangement with CMS in 2021, the Next Generation ACO's final performance year, which allowed APA ACO to retain 15% of its gross shared savings, or $48.8 million.\nBrandon Sim, Co-Chief Executive Officer of ApolloMed, stated, \"We are proud that our ACO generated $56.2 million in gross savings, the highest nationwide in both gross savings amount and in savings percentage, as part of our participation in the Next Generation ACO program during the 2021 performance year. We truly believe that our continued ability to deliver leading results in healthcare delivery for Original Medicare patients across the country is validation of ApolloMed's physician-centr...