Medicare ACOs Continue to Improve Quality of Care, Generate Shared Savings

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CMS released 2014 Quality and Performance Results showing ACO’s continue to improve managed care.

The Centers for Medicare & Medicaid Services today issued 2014 quality and financial performance results showing that more Medicare Accountable Care Organizations (ACOs) continue to generate financial savings while improving the quality of care for Medicare beneficiaries by fostering greater collaboration between doctors, hospitals, and health care providers.

When an ACO demonstrates that it has achieved high-quality care and effectively reducing spending of health care dollars above certain thresholds, it is able to share in the savings generated for Medicare. In 2014, 20 Pioneer and 333 Shared Savings Program ACOs generated more than $411 million in savings, which includes all ACOs savings and losses. The results also show that ACOs with more experience in the program tend to perform better over time.

Medicare ACOs are groups of doctors, hospitals, and other health care providers, who come together voluntarily to provide coordinated high quality care to their Medicare patients. The goal of coordinated care is to ensure that patients, especially the chronically ill, get the right care at the right time, while avoiding unnecessary duplication of services and preventing medical errors. When an ACO exceeds quality and financial thresholds – demonstrating achievement of high-quality care and wiser spending of health care dollars – it is able to share in the savings generated for Medicare.

In addition to those ACOs that generated savings, some ACOs had assigned beneficiary expenditures that were either greater than or less than their updated benchmark, but that fell within their minimum savings rate corridor. This means that they did not earn a performance payment.

National ACO generated $7.77 M dollars in savings for CMS in the Medicare Shared Savings Program for 2013 and 2014 combined. Moving into 2016, National ACO has more than 227 providers that provide services in California, Tennessee, and Pennsylvania. “As a physician owned and governed ACO, we continue to develop and implement forward-thinking and innovative programs that will lead to our goals of improving the patient’s experience of care, improving the health of populations and reducing the per capita costs of healthcare,” said Alex Foxman, M.D., F.A.C.P., President, Board Member and Medical Director of National ACO, LLC.

In 2015, NACO signed on approximately 84 new providers for the 2016 MSSP performance year. “Moving forward from our successes and challenges to date, we are excited about our growth and opportunities to further improve efficiency and quality, lowering beneficiaries’ health care costs, and achieving even greater outcomes going into 2016,” stated Andre Berger, MD, CEO of National ACO, LLC.

For more detailed quality and financial results, click here.

Additional Resources

Visit the Medicare Shared Savings Program News and Updates webpage to access the HHS press release and fact sheet, the link to the Performance Year 2014 results file, and to learn more about the program.


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Andre Berger, M.D.
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