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Medical providers of all types have faced significant challenges to their finances and operations during the COVID-19 pandemic as patient volume declined and expenses for items such as personal protective equipment soared.
For accountable care organizations (ACOs), many of which take on greater risk than other providers through value-based care arrangements, the challenges have been particularly acute. In a survey of 225 ACOs near the beginning of the pandemic, 80% said they were “very concerned” about their financial performance in 2020.
ACOs did obtain some relief, however, when the U.S. Centers for Medicare and Medicaid Services (CMS) announced that its Next Generation ACO model would be extended an additional year through December 2021, and offered adjustments to payment methodologies for certain alternative payment models.