agilon health Reports Strong 2024 ACO REACH Performance, Delivering $229 Million in Gross Savings
agilon health,a healthcare company focused on advancing value-based primary care for seniors, has announced significant financial and quality achievements under the Medicare Accountable Care Organization Realizing Equity, Access and Community Health (ACO REACH) model for the 2024 performance year. The company reported that its eight participating Accountable Care Organizations (ACOs) generated $229 million in gross savings, representing a 13.6% gross savings rate, while also contributing $54 million in savings to the Medicare Trust Fund.
The results highlight agilon health’s continued emphasis on helping independent physicians succeed in full-risk, value-based care arrangements that prioritize preventive healthcare, improved patient outcomes, and cost efficiency. During 2024, the company’s ACO REACH organizations managed the total cost and quality of care for approximately 121,000 Traditional Medicare beneficiaries, demonstrating the growing role of accountable care models in modernizing senior healthcare.
Advancing Value-Based Care Through Full-Risk Models
The ACO REACH model is one of the Centers for Medicare & Medicaid Services’ (CMS) flagship programs designed to encourage healthcare providers to assume greater accountability for both the cost and quality of patient care. Unlike traditional fee-for-service reimbursement systems that compensate providers based primarily on the volume of services delivered, ACO REACH rewards organizations that improve health outcomes while reducing unnecessary medical spending.
Under the program, participating organizations accept full financial responsibility for patient populations. This means providers share in savings when care is delivered efficiently and effectively but also assume financial risk if healthcare costs exceed established benchmarks.
According to agilon health, its eight ACO REACH organizations operated under these full-risk arrangements throughout the 2024 performance year, enabling physicians to focus on proactive care management rather than reactive treatment.
Significant Financial Results
The company’s financial performance under the ACO REACH program reflects several key accomplishments during 2024:
- $229 million in gross healthcare savings
- 13.6% gross savings rate
- $54 million returned to the Medicare Trust Fund
- Approximately 121,000 Traditional Medicare beneficiaries served
- Eight participating Accountable Care Organizations operating under full risk
These results build upon agilon health’s multi-year participation in the federal value-based care initiative and demonstrate continued progress in reducing healthcare expenditures while maintaining high-quality clinical performance.
Leadership Highlights Importance of ACO REACH
Dr. Karthik Rao, Chief Medical Officer at agilon health, emphasized that the company’s approach extends beyond reducing healthcare costs by supporting physicians as they transition toward comprehensive value-based care.
According to Rao, the organization is helping redefine senior healthcare by enabling physicians to embrace full-risk payment models that improve patient outcomes, expand access to care, and lower overall healthcare costs.
He also noted that ACO REACH currently represents the only full-risk payment model available within Traditional Medicare, making it an important mechanism for strengthening community-based primary care practices while empowering physicians to deliver more coordinated and personalized care for older adults.
The company reaffirmed its support for the continuation and expansion of the ACO REACH program, viewing it as an essential component of the future Medicare payment landscape.
Outstanding Quality Performance
In addition to generating substantial financial savings, agilon health reported exceptionally strong clinical quality results during the 2024 performance year.
Across all eight participating ACOs, the company achieved an average quality score of 96%, reflecting consistently high performance across multiple healthcare quality measures established by CMS.
Among the organization’s accomplishments:
- Four ACOs achieved a perfect 100% quality score
- Five ACOs qualified for the High Performers Pool
- High Performer designation was earned by exceeding benchmarks across all four CMS quality measures
Quality scores within ACO REACH evaluate numerous aspects of patient care, including preventive services, chronic disease management, patient experience, and health equity initiatives. Strong performance in these areas demonstrates that cost reductions were achieved without compromising healthcare quality.
Instead, agilon health argues that better coordination and preventive interventions contributed simultaneously to improved patient outcomes and lower overall medical expenditures.
Supporting Independent Physicians
A central component of agilon health’s business model involves partnering with independent primary care physicians and physician groups, providing them with technology, analytics, operational support, and financial infrastructure needed to succeed under value-based reimbursement models.
Rather than replacing physician practices, the company seeks to strengthen community-based healthcare organizations by helping clinicians transition away from fee-for-service reimbursement.
This support includes:
- Population health analytics
- Care coordination resources
- Clinical decision support
- Practice transformation services
- Financial management capabilities
- Technology infrastructure
By reducing administrative complexity, physicians can devote more time to patient care while participating in innovative reimbursement arrangements that reward improved health outcomes.
Physician Perspective
Dr. John Notaro of Buffalo Medical Group, one of the physician organizations participating in agilon’s ACO REACH program, highlighted the practical benefits of the partnership.
According to Notaro, participation in full-risk care models has fundamentally changed how physicians care for senior patients by allowing greater emphasis on prevention and personalized treatment rather than episodic medical interventions.
He explained that financial savings generated through the program have been reinvested directly into patient care, enabling practices to:
- Expand multidisciplinary care teams
- Invest in new healthcare technologies
- Develop additional clinical care programs
- Improve patient and family experiences
- Enhance long-term health outcomes
These reinvestments illustrate one of the primary objectives of value-based care models—using savings generated through efficient healthcare delivery to strengthen primary care infrastructure and improve future patient care.
Expanding Geographic Reach
During the 2024 performance year, agilon health’s ACO REACH network included approximately 1,500 primary care physicians serving patients across 13 communities located in six states:
- Hawaii
- New York
- North Carolina
- Ohio
- Pennsylvania
- Texas
This geographic diversity demonstrates the company’s ability to implement standardized value-based care strategies while supporting local physician organizations operating in different healthcare markets.
Each participating community adapts care management approaches to meet local patient needs while benefiting from shared technology platforms and clinical expertise provided by agilon health.
Multi-Year Performance Since Joining ACO REACH
The 2024 results represent part of a broader trend since agilon health entered the ACO REACH model in 2021.
Over the program’s first several years, the company’s participating organizations have collectively achieved:
- $510 million in cumulative gross savings
- $125 million in total savings returned to the Medicare Trust Fund
These long-term results suggest sustained performance rather than isolated annual improvements.
The company also noted that five of its ACOs ranked among the top 20 Standard ACOs nationwide based on gross savings rate, underscoring the competitiveness of its physician partnerships within the broader Medicare accountable care landscape.
Why Value-Based Care Continues to Grow
Healthcare systems across the United States continue shifting toward value-based reimbursement as policymakers seek to address rising healthcare expenditures while improving patient outcomes.
Traditional fee-for-service payment models often incentivize higher service volume rather than better health results. Value-based care seeks to reverse those incentives by rewarding providers who keep patients healthier and reduce unnecessary hospitalizations, emergency department visits, and duplicative medical services.
Programs such as ACO REACH encourage providers to focus on:
- Preventive medicine
- Early intervention
- Chronic disease management
- Care coordination
- Patient engagement
- Health equity
- Reduced avoidable healthcare utilization
For Medicare beneficiaries, these efforts can translate into more personalized care, improved access to primary care physicians, and stronger coordination among specialists and healthcare providers.
As Medicare continues evaluating alternative payment models, organizations like agilon health are expected to play an increasingly important role in demonstrating how physician-led, value-based care can improve both healthcare quality and financial sustainability.
The company’s latest ACO REACH performance results reinforce its strategy of partnering with community physicians to deliver coordinated, patient-centered care while generating measurable savings for the Medicare program.
With $229 million in gross savings during 2024, consistently high quality scores, and more than half a billion dollars in cumulative savings since joining ACO REACH in 2021, agilon health continues to position itself as a leader in the transition toward value-based healthcare. As demand grows for care models that balance clinical excellence with fiscal responsibility, the company’s physician-focused approach may serve as a model for expanding accountable care across Traditional Medicare in the years ahead.
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