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Accountable care organizations (ACOs) were understandably disappointed in mid-May when the Centers for Medicare and Medicaid Services (CMS) announced that its Next Generation ACO Model would not be extended into 2022.
Launched in 2016, the CMS model provides experienced ACOs with a way to assume higher financial risks and rewards offered through the Medicare Shared Savings Program (MSSP). The Next Generation ACO Model also enables CMS to test whether strong financial incentives for ACOs, combined with tools to support better patient engagement and care management, can improve health outcomes while lowering costs for original Medicare fee-for-service (FFS) beneficiaries.