Contracting News & Notes

Recent headlines and trends to keep an eye on

Premier recommends modifications to Medicare Direct Contracting Model
Premier Inc. (Charlotte, NC) recently issued a statement to CMS to recommend that, in light of its success, the Next Generation Accountable Care Organization (NGACO) program be extended or adapted. The NGACO model requires participants to take the greatest level of financial risk of any ACO model, Premier said. And yet, the organization recently announced that NGACOs reduced Medicare spending by $242 million in in 2018, achieving nearly $221 million in net shared savings. NGACOs that are organized in Premier’s data-driven collaborative realized nearly 30% of these savings, reducing total spending by more than $70 million and earning in excess of $63 million in shared savings. The NGACO model is scheduled to sunset at the end of this year. Premier has called on CMS to build on these successes by either extending the NGACO program or better adapting the new Direct Contracting Model to provide a stepwise progression between models for NGACOs.


CI Security awarded contract with Vizient, Inc. to provide managed detection and response services

CI Security (Seattle, WA) was awarded a group purchasing contract with Vizient, Inc. (Irving, TX). CI Security is a Managed Detection and Response (MDR) services provider specializing in protecting networks of healthcare organizations and critical infrastructure from cyberattacks. The group purchasing contract also benefits members of Provista, Vizient’s supply chain partner serving the non-acute market. Under the terms of the agreement, CI Security will offer its Critical Insight Managed Detection and Response solution to Vizient and Provista members via their group purchasing portfolio to provide critical insight into the health of their security posture and the ability to lower the impact of cyberattacks through real-time threat detection, investigation, and response.


Premier recommends modifications to Medicare Direct Contracting Model

Premier Inc. (Charlotte, NC) recently issued a statement to CMS to recommend that, in light of its success, the Next Generation Accountable Care Organization (NGACO) program be extended or adapted. The NGACO model requires participants to take the greatest level of financial risk of any ACO model, Premier said. And yet, the organization recently announced that NGACOs reduced Medicare spending by $242 million in in 2018, achieving nearly $221 million in net shared savings. NGACOs that are organized in Premier’s data-driven collaborative realized nearly 30% of these savings, reducing total spending by more than $70 million and earning in excess of $63 million in shared savings. The NGACO model is scheduled to sunset at the end of this year. Premier has called on CMS to build on these successes by either extending the NGACO program or better adapting the new Direct Contracting Model to provide a stepwise progression between models for NGACOs.


IDNs, GPOs, and healthcare suppliers and distributors named to 2020 list of World’s Most Ethical Companies

Ethisphere has announced its 2020 list of the world’s “Most Ethical Companies.” This years list recognized 132 companies “for setting the global standards of business integrity and corporate citizenship.”
The list includes 15 healthcare related companies, including:

  • 3M
  • Baptist Health South Florida
  • blue California
  • CareFirst
  • Cleveland Clinic
  • Colgate-Palmolive Company
  • Covenant Health
  • HCSC (Health Care Service Corporation)
  • Henry Schein
  • Lilly
  • MetroHealth
  • Premier Inc
  • Kaiser Permanente
  • Kimberly-Clark
  • UPMC
  • Vizient Inc

HealthTrust, Community Hospital Corporation renew exclusive supply chain relationship

HealthTrust (Nashville, TN) and Community Hospital Corporation (CHC) (Plano, TX) have signed a long-term partnership agreement to strengthen the operating performance of community-based hospitals. CHC is a nonprofit organization that owns, manages, consults with and/or advises more than 100 acute care and post-acute hospitals and healthcare facilities. The contract renewal with HealthTrust preserves the support structure and resources these community hospitals and non-acute providers have come to depend on to manage the escalating costs of healthcare delivery, the company said.


HCA reverses decision to close Plantation General Hospital when it opens new 200-bed facility next year

HCA Healthcare (Nashville, TN) announced it no longer plans to close Plantation General Hospital (Plantation, FL) when it completes a new hospital in Davie, Florida. After failing to win state Certificate of Need approval to build a hospital in Davie, HCA announced plans in 2016 to transfer Plantation General Hospital’s license to Nova Southeastern University’s campus in Davie. Under the plan, Plantation General Hospital would have shut down services, except for a standalone emergency department, after the license transfer. In 2019, the Florida legislature eliminated the CON law for most hospitals, paving the way for HCA to be able to build a hospital in Davie and keep Plantation General Hospital open. HCA expects to open the new 200-bed hospital on Nova Southeastern University’s campus in Davie in early 2021.


Cleveland Clinic named No. 2 Hospital in the World by Newsweek

Newsweek has ranked Cleveland Clinic the No. 2 hospital in the world, as part of its World’s Best Hospitals 2020 analysis. In the U.S., Cleveland Clinic again earned the No. 2 ranking, while four other Cleveland Clinic hospitals also were listed among the best hospitals nationwide:

Cleveland Clinic Fairview Hospital
Cleveland Clinic Florida-Weston
Cleveland Clinic Akron General
Cleveland Clinic Hillcrest Hospital