What Will ACOs Look Like in The Future?

Monday, March 23, 2015

Source: MD&DI

The results of the Pioneer ACO program are mixed at best. While 32 health provider organizations started, only 19 remained as many participants left the program.

Still, some were able to win significant savings, according to the Brookings Institution, and the Centers For Medicare and Medicaid Services remains optimistic about the future of the accountable care organization program.

With that in mind, the federal agency has released the next generation model for ACOs.

It's called the Next Generation ACO model, and one of the chief differences is the way it set benchmarks for lowering cost. Previously, the program would look at recent expenditures of a participating provider organization and look for annual cost reduction or savings by comparing current expenditures, according to the Deloitte Center for Health Solutions.

But many organizations complained that it would be difficult to show annual improvements, especially in parts of the country where healthcare costs were already low.

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