ACOs saved more than $400M in 2014
- In 2014, 20 ACOs in the Pioneer ACO model and 333 Medicare Shared Savings Program ACOs reaped more than $411 million altogether, according to new data released by CMS.
- In addition, 97 ACOs qualified for shared savings payments of more than $422 million by meeting quality standards alongside savings thresholds.
- However, many ACOs fell below the payment thresholds. Only 92 of 333 ACOs in the shared savings program netted a total of $341 million in payments, Healthcare IT News reports.
CMS has to deal with the reality that a disproportionate amount of ACOs are realizing cost savings. For example, an additional 89 ACOs reduced healthcare costs compared to their benchmark but were unable to qualify for shared savings because of not meeting their minimum savings thresholds, according to CMS.
“ACOs with more experience in the program were more likely to generate shared savings,” the agency said in a prepared statement. “Among ACOs that entered the program in 2012, 37% generated shared savings, compared to 27% of those that entered in 2013, and 19% of those that entered in 2014.”
Despite the take-the-good-with-the-bad news, CMS marches forth with the ACO program. “The Shared Savings Program continues to receive strong interest from both new applicants seeking to join the program as well as from existing ACOs seeking to continue in the program for a second agreement period starting in 2016,” the agency said.
New and renewing ACOs will be announced around the end of the year.
- Healthcare IT News Most Medicare shared savings ACOs fell short of payments in 2014
- Becker's Hospital Review CMS releases 2014 Medicare ACO quality, financial results: 10 things to know
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