Dive Brief:
- The Obama administration has created a new project, the ACO Investment Model, slated to provide up to $114 million in funds to as many as 75 accountable care organizations nationwide. The administration announced the funding initiative this week for ACOs taking part in the Medicare Shared Savings Program.
- According to a press release from CMS, the model was created as a response to feedback and research finding that many providers do not have the upfront resources to implement infrastructure necessary for ACOs. CMS will provide funding for new ACOs in rural and underserved communities, and the funds will be paid back to CMS through shared savings realized by the ACOs.
- New ACOs taking part in the program will receive three types of payments beginning January 1, 2016: upfront, fixed funds; an upfront, variable payment, depending upon the number of expected beneficiaries; and a monthly variable payment. ACOs that have already been created will receive an upfront variable payment and monthly payments.
Dive Insight:
Funding through the model is slated for hospitals that provide critical access and house fewer than 100 beds. The model is meant to funnel new ACOs into the higher-risk program and to keep existing ones from dropping out of the program—which they have begun to do in droves.
“The ACO Investment Model will give Medicare Accountable Care Organizations more flexibility in setting quality and financial goals, while giving them greater accountability for delivering quality care efficiently,” said CMS Administrator Marilyn Tavenner in a statement. “We are working with these organizations to make necessary investments that encourage doctors, hospitals and other health care providers to work together to better coordinate care and keep people healthy.”