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The departure of seven accountable care organizations from CMS’ Next Generation ACO Model program will likely not threaten the viability of the program, but the reasons behind the early exit are costing providers millions.
The Accountable Care Coalition of Chesapeake, Allina Health, Fairview Health Services, KentuckyOne Health, Lifeprint ACO, MemorialCare and Sharp HealthCare have left the program for 2018 although they will likely still be on the hook for any losses from the 2017 performance year. There are now 51 ACOs that participate in the Next Generation model.
Four of the seven ACOs indicated that they decided to withdraw because changes made to the model’s design, including the chosen risk adjustment, would directly hurt their ability to make money in the program.