ACO Foundations: Four Pillars for Successful Risk Management in Value-Based Contracts

Strategic Approaches for ACOs to Navigate and Thrive in Value-Based Care

Value-based contracts (VBCs) have rapidly become the cornerstone of the transition from fee-for-service to outcomes-focused reimbursement in the US healthcare system. While these risk-based contracts offer the potential for significant financial upside, they require robust strategies to manage and mitigate risk. This white paper outlines four foundational pillars for risk management that ACOs must address to achieve sustainable performance: Underwriting and Contracting, Risk Adjustment, Medical Economic Reporting, and In-Year Forecasting. Each pillar is vital to effective risk management, improved patient outcomes, and financial sustainability.

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