More Downside Risk, New Upside Potential

The Centers for Medicare & Medicaid Services (CMS) has introduced a new Medicare Geographic Direct Contracting Model (Geo). Starting in 2022, regional organizations called Geo direct contracting entities (Geo DCEs) will coordinate care for all Medicare fee-for-service (FFS) beneficiaries in a geographic region and be responsible for beneficiary health outcomes and the total cost of care (see CMS Announces New Medicare Geographic Direct Contracting Model; January 1, 2022 Launch Planned).

Direct contracting (which now includes three voluntary risk-sharing payment model options—Global, Professional, and Geo) is defined by CMS as an opportunity “to test an array of . . .