close

Blogs > Health Care Law Blog

ACOs Generate $313 Million in Savings to CMS

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.

If you have any questions concerning this post or any other related matters, please contact me at sjarvaweiss@nmmlaw.com.