Next Generation Accountable Care Organizations (ACO) saved the Medicare program $62 million during their first year of operation in 2016, encouraging CMS to expand downside risk models across Medicare.
Next Generation ACOs accept the highest risk of any current CMS accountable care programs, which emphasizes the achievement of reducing costs while maintaining high quality of care, said CMS Administrator Seema Verma.
“These results provide further evidence that ACOs succeed under two-sided risk,” Verma said.
“ACOs in the Next Generation Model are being held accountable with strong financial incentives and are provided with substantial flexibility and regulatory relief. They are delivering value and providing quality care to patients and taxpayers even in their first performance year, and we believe that these results are achievable for other ACOs under similar incentives.”