ALHAMBRA, Calif., Feb. 16, 2021 /PRNewswire/ -- Apollo Medical
Holdings, Inc. ("ApolloMed") (NASDAQ: AMEH), a leading
physician-centric, technology-powered healthcare management
company, today announced that its wholly-owned subsidiary, APA ACO,
Inc. ("APA ACO") generated $37.3
million in gross savings for the 2019 performance year,
resulting in $19.8 million in shared
savings from the Centers for Medicare & Medicaid Services
("CMS").
APA ACO applied and was approved by CMS to participate in the
Next Generation Accountable Care Organization (ACO) Model in 2017.
APA ACO was approved to participate in the All-Inclusive
Population-Based Payment ("AIPBP") track, which is the most
advanced risk-taking payment model. Under the AIPBP track, CMS
estimates the total annual expenditures for the Next Generation
ACO's patients and then pays that projected amount to the ACO in a
per-beneficiary, per-month ("PBPM") payment. The Next Generation
ACO is then responsible for paying all Part A and Part B costs for
in-network participating providers and preferred providers with
whom it has contracted.
For 2019, APA ACO's aggregate benchmark expenditure calculated
by CMS was $504.9 million. APA ACO's
actual expenditures were $467.6
million, resulting in gross savings of $37.3 million. However, as CMS caps gross savings
at 5%-15% of the benchmark expenditure and the Company electing the
5% cap, gross savings maxed out at $25.2
million. APA ACO had chosen an 80/20 risk arrangement with
CMS. With a 2% sequestration rate, the resulting net shared savings
to APA ACO was $19.8 million for
2019.
Kenneth Sim M.D., Executive
Chairman and Co-Chief Executive Officer of ApolloMed, stated, "We
believe the $37.3 million in gross
savings generated during the 2019 performance year is a testament
to ApolloMed's physician-centric, value-based integrated care
model, all of which is supported by our internally developed
proprietary technologies. We continue to invest in innovation and
technology, as it enables us to improve outcomes for our member
population by empowering our contracted physicians to provide
highly personalized care in a more cost- and time-efficient manner.
ApolloMed is continuously working to improve our population health
management platform, which combined with our clinical knowledge
base and risk management infrastructure, has positioned us to
benefit from the ongoing shift to value-based payment models. Our
integrated model spans the entire inpatient and outpatient care
continuum, which is essential for the delivery of quality,
cost-efficient care."
About Apollo Medical Holdings, Inc.
ApolloMed is a leading physician-centric, technology-powered,
risk-bearing healthcare management company. Leveraging its
proprietary population health management and healthcare delivery
platform, ApolloMed operates an integrated, value-based healthcare
model, which aims to empower the providers in its network to
deliver the highest quality of care to its patients in a
cost-effective manner.
Headquartered in Alhambra,
California, ApolloMed's subsidiaries include management
services organizations ("MSOs"), affiliated independent practice
associations ("IPAs") and a Next Generation ACO. Network Medical
Management, Inc. and Apollo Medical Management, Inc. are the
administrative and managerial services companies for the affiliated
physician owned professional corporations that contract with
independent physicians to deliver medical services in-office and
virtually under the Allied Pacific of California IPA, Alpha Care
Medical Group, Inc. and Accountable Health Care IPA brands. These
affiliates are supported by ApolloMed Hospitalists, a Medical
Corporation. Our Next Generation ACO operates under the APA ACO,
Inc. brand and participates in the Centers for Medicare &
Medicaid Services program that allows provider groups to assume
higher levels of financial risk and potentially achieve a higher
reward from participation in the program's attribution-based risk
sharing model. For more information, please visit
www.apollomed.net.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
such as statements about the Company's operational focus, strategic
growth plans, and merger integration efforts, including APA ACO's
continued participation in the AIPBP track and as a Next Generation
ACO. Forward-looking statements reflect current views with respect
to future events and financial performance and therefore cannot be
guaranteed. Such statements are based on the current expectations
and certain assumptions of the Company's management, and some or
all of such expectations and assumptions may not materialize or may
vary significantly from actual results. Actual results may also
vary materially from forward-looking statements due to risks,
uncertainties and other factors, known and unknown, including the
risk factors described from time to time in the Company's reports
to the Securities and Exchange Commission ("SEC"), including
without limitation the risk factors discussed in the Company's
Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC and any
subsequent quarterly reports on Form 10-Q.
FOR MORE INFORMATION, PLEASE CONTACT:
Investor
Relations (24 hours)
(626) 943-6491
investors@apollomed.net
Carolyne Sohn, The Equity
Group
(415) 568-2255
csohn@equityny.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/apollo-medical-holdings-inc-announces-apa-aco-achieved-19-8-million-in-shared-savings-from-centers-for-medicare-and-medicaid-services-for-2019-performance-year-301228569.html
SOURCE Apollo Medical Holdings, Inc.