On January 30, the Centers for Medicare & Medicaid Services (CMS) released findings of studies of Medicare Accountable Care Organization (ACO) initiatives, Pioneer ACOs, Physician Group Practice and bundled payments for the Care Improvement Initiative. Key results include:
- Of the 54 ACOs that exceeded their benchmarks in the first 12 months, 29 generated shared savings totaling more than $126 million. In addition, 54 out of 114 of the ACOs that started program operations in 2012 already had lower expenditures than projected.
- Pioneer ACOs generated gross savings of $147 million in their first year while continuing to deliver high quality care. Results showed that of the 23 Pioneer ACOs, nine had significantly lower spending growth relative to Medicare fee for service while exceeding quality reporting requirements.
- The Physician Group Practice Demonstration evaluation report confirmed overall savings over the 5 year experience with 7 out of 10 physician group practices earning shared savings payments for improving the quality and cost efficiency totaling $108 million over the course of the Demonstration.
As VNAA President and CEO Tracey Moorhead recently pointed out on Twitter, the CMS data shows that many of the ACOs in the study reported improved coordination or formalization of their collaboration with home health agencies as a result of the implementation of the Pioneer Model, and that spending on home health agency services grew significantly faster among Pioneer ACO-aligned beneficiaries relative to local market comparison beneficiaries. The full report is available here.
To learn more about the ways CMS is working to reform the health care delivery system visit: http://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-Sheets/2014-Fact-sheets-items/2014-01-30-03.html
To learn more about the Medicare Shared Savings Program visit: http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/sharedsavingsprogram/index.html?redirect=/sharedsavingsprogram/
To learn more about Pioneer ACOs visit: http://innovation.cms.gov/initiatives/Pioneer-ACO-Model/index.html.
To learn more about The Physician Group Practice Demonstration visit: http://www.cms.gov/Medicare/Demonstration-Projects/DemoProjectsEvalRpts/downloads/PGP_Fact_Sheet.pdf