Are ACOs & the Medicare Shared Savings Program working? 5 key points

The Department of Health and Human Services created the Medicare Shared Savings Program and accountable care organizations to minimize healthcare spending, yet the programs have cost substantially more than the government anticipated, according to RevCycle Intelligence.

Advertisement

Here are five key points:

1. Forty-five percent of ACOs have cost more than the federal government expected, according to Kaiser Health News.  

2. By the end of 2018, HHS set a goal of using 50 percent of Medicare spending toward value-based reimbursement. However, Kaiser reports most physicians are not participating in risk-based contracts.

3. In 2014, seven percent of ACOs opted to participate in risk-based contracts, which would allow them to have a significant reward for quality care while risking financial penalties if they cost Medicare more than expected.

4. HHS predicted the Medicare Shared Savings Program and accountable care organizations would save at least $10 million in 2014.

5. In 2014, the Medicare Shared Savings Program had a net loss of $2.6 million.

More articles on coding & billing:
4 new strategies that could make Medicare function more like the private sector
Aetna, Virtua introduce ACO in South Jersey — 5 things to know
CMS releases update for ICD-10 transition complications: 5 insights

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

Register to Attend Webinar

Is ambulatory care healthcare’s big margin engine? 4 leaders weigh in

Wednesday, July 29
1:00 PM - 2:00 PM CDT

Presenters: Joe Ganley, athenahealthJeffrey Flynn, CASC, Gramercy Surgery CenterBryan Tsao, Access Center, Loma Linda University HealthJason Zepeda, Northridge Hospital Medical Center, CommonSpirit HealthGreg DeConciliis, PA-C, CASC, Boston Out­Patient Surgical Suites

Advertisement

Next Up in ASC Coding, Billing & Collections

Advertisement

Comments are closed.