$5.0M in expenses

METHODIST PATIENT CENTERED ACO (MPCACO) IS A TEXAS NONPROFIT CORPORATION FORMED TO PARTICIPATE IN THE MEDICARE SHARED SAVINGS PROGRAM (MSSP) AS AN ACCOUNTABLE CARE ORGANIZATION (ACO). ON JULY 1, 2012, THE CENTER FOR MEDICARE AND MEDICAID SERVICES (CMS) SELECTED MPCACO TO PARTICIPATE IN ITS MSSP. METHODIST HOSPITALS OF DALLAS (MHD) IS A TEXAS NONPROFIT CORPORATION AND A 501(C)(3) ORGANIZATION. MHD IS THE SOLE MEMBER OF MPCACO. MHD PROVIDES QUALITY INTEGRATED CARE TO IMPROVE AND SAVE LIVES OF INDIVIDUALS THROUGHOUT NORTH TEXAS. AS REQUIRED BY SECTION 425.106(c) OF THE MSSP REGULATIONS, SECTION 321 OF THE MPCACO AMENDED AND RESTATED BYLAWS REQUIRES THAT AT LEAST 75% OF THE MEMBERS OF THE BOARD SHALL BE ACO PARTICIPANTS AS DEFINED IN THE MSSP REGULATIONS, OR REPRESENTATIVES OF THOSE PARTICIPANTS, TO ENSURE MPCACO IS OPERATED IN FURTHERANCE OF MHD'S EXEMPT PURPOSES. DURING THE MOST RECENT REPORTING PERIOD OF JANUARY 1, 2023 THROUGH DECEMBER 31, 2023, MEDICARE ADVISED THE ACO IT HAD PROPERLY REPORTED ON ALL REQUIRED QUALITY METRICS AND ACHIEVED MEDICARE SAVINGS OF $3,659,552 IN ONE MEASUREMENT PERIOD OF 2023 ON THE MEDICARE POPULATION SERVED BY THE ACO. MPCACO MOVED FROM THE BASIC TRACK TO ENHANCED TRACK ON JULY 1, 2019. PURSUANT TO THE SHARED SAVING AGREEMENT, 39% OF THAT TOTAL SAVINGS WAS DISTRIBUTED TO THE ACO. SUBSEQUENTLY, A PORTION OF THAT DISTRIBUTION WAS SHARED WITH PHYSICIANS WHO HAD SIGNED UP FOR THE SHARED SAVINGS PROGRAM AND HAD ACHIEVED A MINIMUM NUMBER OF POINTS (10) BY COMPLETING TASKS OF PERFORMANCE IMPROVEMENT, ACO CITIZENSHIP, QUALITY AND/OR ELECTRONIC MEDICAL RECORDS. AN ADDITIONAL PORTION WAS DISTRIBUTED TO THE HOSPITALS IN THE METHODIST HEALTH SYSTEM AND THE BALANCE WAS RETAINED TO OFFSET A PORTION OF THE ADMINISTRATIVE COSTS OF THE ACO.