CMS redesigns Direct Contracting into an ACO model

The Global and Professional Direct Contracting Model will be replaced with a more equity-focused and provider-led Accountable Care Organization Model in 2023, the Centers for Medicare and Medicaid Services said Thursday.

The agency also officially will end the Geographic Direct Contracting model, which it halted last March.

The redesigned model, called the ACO Realizing Equity, Access, and Community Health Model—or ACO REACH—includes new health equity requirements, changes to risk adjustment and additional application scoring criteria. As with GPDC, the Center for Medicare and Medicaid Innovation will run the model.

CMS’ announcement comes after Direct Contracting, started by the Trump administration to build off previous ACO models, came under fire from progressive lawmakers, who objected to Medicare Advantage and private equity influence in the program and worried profit-driven motives would compromise patient care. Meanwhile, provider associations and some Obama administration health officials have urged CMS recently to keep the GPDC and make changes. Applications for GPDC have been on hold since last year.

Full Article