Lessons from a MassHealth ACO that saved $12.2M

A few years ago, Massachusetts renewed its Medicaid Section 1115 waiver and transformed MassHealth, the state’s Medicaid program, from an MCO to an ACO.

Community Care Cooperative (C3), a federally qualified health center (FQHC)-owned ACO based in Boston, analyzed the opportunity to start an ACO and avoid being members of larger organizations where they would likely not have a primary care-led FQHC presence.

C3 submitted a request for proposal and were awarded the five-year contract by the state, which began in 2018. According to Christina Severin, president and CEO of C3, in its first full year of operations, the organization beat its $533.6M total cost of care budget projections, saving Massachusetts a little over $12.2 million.

Additionally, C3 earned a $8.1 million shared savings payment as well as $1.3 million due to a 100% quality score from MassHealth.

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