VillageMD Participation in Innovative Medicare Model Contributes to Federal Savings and Quality Care

CMS results show value-based payment model achievements in the Medicare patient population

CHICAGO--()--VillageMD generated shared savings for the Medicare program while providing high quality primary care to patients through its participation in the Centers for Medicare and Medicaid Services (CMS) Global and Professional Direct Contracting (GPDC) Model in calendar year 2021. VillageMD has been the largest participating sponsor in the GPDC Model since its launch in May 2021.

VillageMD’s six Direct Contracting Entities (DCEs) were part of the 53 DCEs that generated $70 million in net savings for the Medicare program in 2021, according to results from CMS. All VillageMD DCEs met gross savings and notably, the Village Medical Houston Accountable Care Organization (ACO) had the highest gross savings rate of all standard DCEs at 9.61% and net savings rate of 7.45%. VillageMD’s DCEs produced total gross savings of nearly $24 million and total net savings of more than $12 million for the Medicare program.

“Our participation in the Global and Professional Direct Contracting Model reduced costs while maintaining our highest standard of care for our patients” said Tim Barry, CEO and Chair of VillageMD. “We look forward to participating in the ACO REACH program in 2023, which is a once-in-a-generation opportunity to improve care access for underserved populations and build healthier communities.”

“The GPDC Model results are some of strongest achieved to date by the advanced alternative payment models tested by the federal government,” said Susan Dentzer, president and CEO of America’s Physician Groups (APG), a national association representing more than 335 physician groups. “APG is proud of our members’ participation in the program, and we especially congratulate VillageMD’s Village Medical Houston Accountable Care Organization (ACO) in Houston, Texas for producing the highest level of net savings for taxpayers of any DCE in the country, while also attaining perfect quality scores.”

VillageMD is built on the concept that investing in primary care is crucial to keeping Americans healthy and fixing the unsustainable healthcare system. Its innovative value-based care model is focused on preventative care and dedicating resources where they have historically made the most difference for patients. VillageMD has been a leading participant in CMS innovation programs that endeavor to improve patient outcomes, lower healthcare costs, and transform the U.S. healthcare system, and has applied to participate in the Center for Medicare and Medicaid Innovation’s (CMMI) ACO Realizing Equity, Access, and Community Health (ACO REACH) Model, which begins in January 2023.

The ACO REACH Model puts primary care providers at the center of integrated care teams and will better equip providers to treat and manage chronic conditions. According to the Centers for Disease Control and Prevention, the U.S. spends $4.1 trillion in annual healthcare expenditures, more than 90% of which is tied to patients with chronic and mental health conditions. The model also seeks to encourage primary care in medically underserved areas, which aligns with VillageMD’s commitment to open more than half of their primary care practices in medically underserved areas.

In February 2022, CMS and the Center for Medicare and Medicaid Innovation (CMMI) announced that the ACO Realizing Equity, Access, and Community Health (REACH) Model would replace GPDC Model to better align with the Biden-Harris Administration’s priorities and CMS’ vision for accountable care. The ACO REACH Model is the first model to require a health equity plan to reduce disparities and to collect patient demographic data tied to social determinants of health.

About VillageMD

VillageMD is committed to offering high-quality, accessible primary care options for communities across the country through Village Medical. VillageMD partners with physicians to provide the tools, technology, operations, staffing support and industry relationships to deliver high-quality clinical care and better patient outcomes, while reducing the total cost of care. The Village Medical brand provides value-based primary care for patients at traditional free-standing practices, Village Medical at Walgreens practices, at home and via virtual visits. VillageMD and Village Medical have grown to 22 markets and are responsible for more than 1.6 million patients. To learn more, please visit

The Statements contained in this document are solely those of the authors and do not necessarily reflect the views or policies of CMS. The authors assume responsibility for the accuracy and completeness of the information contained in this document.


Molly Lynch


Molly Lynch