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ACOs Generate $313 Million in Savings to CMS

Deadlines Loom for HHS Allocation of $100 Billion COVID-19 CARES Act Relief Fund for Health Care Providers

The Centers for Medicare & Medicaid Services (CMS) released new data showing that it made a $313 million gain from the Medicare Shared Savings Program in 2017.  The 472 Medicare Accountable Care Organizations (ACOs) collectively generated savings of $1 billion and CMS paid $780 million in bonuses to the ACOs.

The savings are the result of more ACOs moving to risk-based contracts in 2017.  However, 433 of the 472 ACOs (92%) remain in Track 1 where providers have no downside risk.  Six ACOs (1.3%) were in Track 2 and 33 (7%) were in Track 3, both of which require providers to pay back any losses to CMS.

Notwithstanding these gains, CMS plans to eliminate Track 1 from the Medicare Shared Savings Program which will likely result in many ACOs leaving the program.

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