Case Study: a large healthcare system achieves clearer ACO negotiation insights with Point B predictive analytics

Using the Power of Predictive Analytics to Forecast ACO Impact

A large healthcare system, exploring a new accountable care organization (ACO) product with a national payor, engaged Point B to understand the potential financial impact of the proposed agreement. The challenge was to determine if the deal was beneficial, as it involved complex variables like enrollment, utilization, and aggressive cost reductions in exchange for an exclusive patient network.

Point B developed a predictive analytic framework using a stochastic simulation model to evaluate financial performance across a vast array of scenarios. This solution provided the client with new insights into the key drivers of the agreement, revealing that the potential financial downside was $5-10 million worse than initial forecasts. Equipped with this analysis from Point B, the client confidently entered negotiations and gained a sustainable framework for evaluating future payor partnerships.