- In 2015, Universal American’s accountable care organizations lost $20.1 million on revenues of $20.9 million, Modern Healthcare reports.
- As a result of repeated financial losses, the White Plains, NY firm has scaled back the number of ACOs it operates, from 34 during the first years of the program to 22.
- CEO Richard Barasch said in a conference call that the firm will concentrate its resources “where Medicare shared-savings can work,” and improve quality while reducing costs.
While substantial, last year’s ACO-related loss was far less than in 2014, when the firm lost $30.8 million on revenue of $13.4 million.
Overall, the insurance giant reported net revenues of $1.49 billion, down from $1.6 billion in 2014. The net los for 2015 was $164 million, up sharply from a net loss of $29.5 million the previous year.
Since getting into the ACO business, Universal American has been backpedaling—dropping from a high of 34 ACOs to 22 last year. Of those, 15 are in less-risky options, and seven are in ones that offer bigger payouts but at increased risk.
Universal American also reported $154.3 million in losses associated with discontinued operations, including the sale of its traditional insurance business. The disposition will allow the firm to focus on growing its ACO and Medicare Advantage businesses, said Chairman and CEO Richard Barasch.