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Few Winners Among MSSP Participants
Health Leaders Media

The secret sauce in Memorial Hermann ACO success in besting 219 other physician groups in the federal shared savings sweepstakes announced Tuesday may be the fact that they’re based in Houston.

“The benchmarks are high in this market,” acknowledges Christopher Lloyd, CEO of the physician ACO, meaning there was a lot of low hanging fruit to pick. High-cost ACOs in historically high utilization areas such as Florida, New York, and Texas have an edge because the algorithm used to calculate savings compares spending for assigned beneficiaries with concurrent Medicare spending elsewhere in that region.