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According to new CMS data, accountable care organizations (ACOs) saved Medicare $2.4 billion in 2024, setting a new record for savings in the Medicare Shared Savings Program (MSSP). At the same time, more healthcare organizations may be turning to value-based care to help them mitigate the impact of new policy changes, financial pressures, and more.
Medicare ACOs set new savings record
CMS analyzed data from 476 ACOs participating in the MSSP. These ACOs represented 80% of the 10.3 million beneficiaries assigned to an ACO.
Of the 476 ACOs, 75% earned performance payments totaling $4.1 billion and resulted in Medicare savings of $2.4 billion in 2024. According to CMS, this is the highest share of ACOs receiving performance payments and the highest amount of savings for ACOs and Medicare since the inception of the MSSP.
However, CMS also noted that 16 ACOs had $20.3 million in collective shared losses.
In 2024, ACOs had $241 in net per capita savings compared to $207 in 2023. Similarly, ACOs had $643 in gross per capita savings in 2024 compared to $515 in 2023. Net per capita savings represent Medicare savings while gross per capita savings represent savings shared by ACOs and Medicare.
CMS also found that low-revenue ACOs continue to outperform high-revenue ACOs, with low-revenue ACOs generating $316 in net per capita savings compared to $175 for high-revenue ACOs. According to Healthcare Finance, low-revenue ACOs are typically led by physicians or are comprised of federally qualified health centers/rural health clinics. In comparison, high-revenue ACOs are usually hospital-led.
ACOs that were predominantly made up of primary care physicians also performed better than those with fewer physicians ($401 in net per capita savings vs. $219, respectively).