APG Applauds CMMI for New Geographic Direct Contracting Model

Washington, DC – America’s Physician Groups (APG) applauds the Centers for Medicare & Medicaid Innovation Center (CMMI) today for initiating the Geographic Direct Contracting Model (Geo).

“The value-based care community welcomes this new payment and care delivery model,” said Don Crane, APG President and CEO. “Models of care that are focused on systems of reimbursement such as capitation and holding physicians accountable for cost, coordination, and quality are integral to moving away from the fee-for-service model and toward more transformative models of care that reward value while accounting for improved population health, quality, and the patient experience.”

Geo is a new payment and health care delivery model that will test whether a geographic-based approach can improve health and reduce costs for Medicare beneficiaries across a geographic region. Geo participants will take full risk with 100 percent shared savings and shared losses for Medicare Parts A and B in Medicare fee-for-service in a specific geographic region. This model will begin in January 2022 and will be tested over a six-year period in four to 10 regions.

The four primary goals of Geo are to provide Medicare beneficiaries with:

  • Better care
  • Better benefit enhancements and engagement incentives
  • Lower out-of-pocket costs
  • Strong beneficiary protections

This new model is reflective of the shared goals between CMMI and APG as our member organizations have dedicated substantial investments and planning in preparation for the transformation of the nation’s healthcare system from focusing on volume toward value-based care. Geo ensures that moving forward, more models will account for quality of care for patients while encouraging providers and organizations to take on risk.

For more information on Geo, click here.

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About America’s Physician Groups

America’s Physician Groups is a not-for-profit, mission-driven association organized to assist accountable physician groups to improve the quality and value of healthcare provided to patients. America’s Physician Groups represents and supports physician groups that assume responsibility for clinically integrated, comprehensive, and coordinated healthcare on behalf of our patients. In California, APG represents over 180 physician groups across the state. Visit us at www.apg.org.


Contact: Greg Phillips, APG Director of Communications, 202-770-1901, gphillips@apg.org