Based in Connecticut, Great Point Partners (GPP) is a private equity firm with a focus on health care investments spanning North America and Europe. In late 2015, Great Point Partners announced that Citra Health Solutions, a GPP II portfolio company, had enabled a pair of managed accountable care organizations (ACO) to realize savings totaling $11.2 million.
The cost savings achieved by American Health Alliance and ACO Health Partners in 2014 were incentivized by a new Shared Savings Program. This provides physicians with a way of sharing in up to 60 percent of savings they enable, which in turn encourages the use of population health management programs that provide service delivery that is both cost effective and of consistently high quality.
In addition to generating major savings, the program was successful in improving patient satisfaction and surpassed quality requirements by approximately 80 percent. The GPP managing director described the transition toward a value-based reimbursement as presenting a complex mix of opportunities and challenges – the payoff being significant health system performance increases on a variety of levels.