Direct Contracting (ACO REACH) - Observations From The PY2022 Financial Results

On October 23, the Centers for Medicare & Medicaid Services (CMS) released the 2022 financial and quality results for the CMS Innovation Center’s Global and Professional Direct Contracting (GPDC) model. 2022 marked the second year of the GPDC model – a model that was designed to test a new implementation of the total cost of care risk model for original Medicare fee-for-service beneficiaries. Key features of the model included the introduction of partially capitated payments, as well as an option for providers to assume more financial risk and reward than is available under the Medicare Shared Savings Program (MSSP). Ultimately, 99 Direct Contracting Entities (DCEs) participated in the second year of the model, generating a total gross savings of $870 million, $484 million of which was paid to DCEs as shared savings. In this brief, we share our initial observations of the 2022 GPDC financial results.