3 More Groups Exit Medicare Pioneer Program

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Affordable Care Organizations are groups that find ways to lower healthcare costs in return for compensation from Medicare. However, Modern Healthcare reports three more organizations that were initially chosen by the CMS to test the ACO model have decided to opt out of the program. This “[suggests] even the most sophisticated health systems may be unwilling to take losses as policymakers test new payment and delivery models.”

Originally, organizations “[accepted] potential losses with the goal of earning bonuses tied to performance on quality measures and their ability to slow health spending.”

The CMS maintains, “the program is “on an upward trajectory” and is yielding valuable lessons toward ACO development and the potential for national expansion.”

However, some argue ACOs located in areas with higher-than-average healthcare spending are at an advantage because doctors here have more chances to cut costs. Hospitals that do not meet the savings benchmark set by the CMS receive no reimbursement.

Summary By MedicalGroups.com

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