Risk Strategies helps ACOs protect themselves from the downside risk of value-based contracts. We also help ACOs and their members reduce expenses with market-leading insurance products so they can focus on the triple aim of improving patient care, improving population health and reducing health care costs.

Why work with Risk Strategies?

Risk Strategies is a privately held, national brokerage and consulting firm. Ranked in the top 20 brokers in the country, we offer risk management advice and insurance and reinsurance placement for health care, property and casualty, and employee-benefits risks.

We have one of the largest teams of dedicated health care insurance and reinsurance professionals operating across the country and we bring to our health care clients a focused, integrated and responsive liability and risk management service that is best-in-class.

With offices across the country, Risk Strategies gives you the reach and resources of a nationwide firm with the focused expertise and attention of a boutique specialist.

Protecting ACO Downside Risk

Managing the overall financial impact of risk-based contracts is vital for providers to ensure the long-term financial success of their organizations as a whole. Insurance plays a key role in protecting against the downside financial impact of risk-based contracts and two types of insurance in particular can play a role:

Specific stop-loss insurance that protects the provider from the financial risk associated with high dollar claims for individual members in their risk population

Aggregate stop-loss insurance that protects the provider from the overall performance of a given risk-based contract

We are experts in protecting ACOs’ downside risk.

Surety Bonds as a Repayment Mechanism

Medicare Shared Savings Program (“MSSP”) Track 1+, Track 2 and Track 3; Pathways to Success Tracks C, D, E, and Enhanced; and NextGen ACOs, have two-sided risk. CMS requires these ACOs to provide a repayment mechanism to assure that shared losses can be repaid.

Depending on its track, a Pathways to Success ACO’s repayment mechanism equals the lesser of either: 2% of the total Medicare Parts A and B FFS revenue of its ACO participants or 1% of the total per capita Medicare Parts A and B FFS expenditures for its assigned beneficiaries.

CMS accepts letters of credit (LOC), cash held in escrow, and/or surety bonds for this purpose. While LOCs are an acceptable form of collateral, LOCs are costly and inflexible, and ACOs often struggle to find the capital to place into escrow funds. The better, more cost-effective option for ACOs is using a surety bond.

We advise on, and place, surety bonds for our ACO clients.

Medical Malpractice Insurance for Physicians in your ACO

Medical malpractice insurance is one of the largest expense categories for health care providers.  An ACO that offers a proprietary Medical Malpractice program for its members brings added value to the ACO relationship.

We specialize in medical malpractice insurance for physicians and surgeons and we can create an exclusive insurance program for the members of your ACO with an AM Best “A” rated carrier which could cut insurance costs by 20% to 40%.

What Makes Us Different

A Full Spectrum of Coverage

 Go beyond the limits of a generalized broker. The focused expertise of insurance professionals from Risk Strategies ensures you get innovative, practical approaches to the full spectrum of liability and risk your business faces, including:

  • Surety Bonds – helping ACOs securitize their downside risk with a surety bond in lieu of a Letter of Credit for their repayment mechanism
  • Reinsurance – providing reinsurance protection across the entire spectrum of health care risk including the self-funded community, as well as to the life, accident and disability markets
  • Managed Care – providing managed care stop loss coverage for hospitals, health plans, physicians, ACO’s and others in the health care industry
  • Professional Liability – providing professional liability coverage for a variety of health care organizations, such as hospitals, IPAs, physicians, ACOs, long-term care organizations, behavioral health and miscellaneous medical facilities
  • Life and Disability Benefits – providing health care organizations with customized solutions for their employee benefits plans
  • Cyber – providing health care organizations a comprehensive suite of data security and privacy insurance solutions that are custom-tailored for the unique needs of health care businesses
  • Property & Casualty – providing Property & Casualty coverage for a variety of health care organizations, such as hospitals, physicians, ACOs, long term care organizations, behavioral health, miscellaneous medical facilities, life sciences, medical products, and managed care organizations


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Contact Us

We are confident that we have a risk solution that will meet your needs. To discuss the options available to protect every facet of your ACO’s risk, please contact: Chuck Newton at cnewton@risk-strategies.com or 804.647.8360 or visit www.risk-strategies.com/healthcare

Visit Risk Strategies Website

Risk Strategies helps ACOs protect themselves from the downside risk of value-based contracts. We also help ACOs and their members reduce expenses with market-leading insurance products.