CMS: ACOs Generating Savings, Improving Quality

In comparing results in 2015 to 2014, average quality performance improved by more than 15 percent on key preventative care measures including screening for risk for future falls, depression screening and follow-up, blood pressure screening and follow-up and providing pneumonia vaccinations. For 2015, our ACO generated savings of almost $30 million and earned shared savings of more than $14 million as a result, making our financial performance first among ACOs that launched in 2014, eighth in the country overall, and second in the state.

For the MSSP program, while the ACOs collectively generated $429 million in savings, the picture can be seen through rose-colored lenses.

“The coordinated, physician-led care provided by Accountable Care Organizations resulted in better care for over 7.7 million Medicare beneficiaries while also reducing costs”, said Andy Slavitt, CMS Acting Administrator.

In 2015, Medicare Accountable Care Organizations had combined total program savings of $466 million, which includes all Accountable Care Organizations’ experiences, for 392 Medicare Shared Savings Program participants and 12 Pioneer Accountable Care Organization Model participants. Nine of those organizations had quality scores over 90 percent previous year, the agency said. Shared Savings Program ACOs reached $429 million in total savings a year ago. All providers in the Pioneer ACO model improved their quality scores by more than 21 percentage points from 2012 to 2015. Eight of the 12 total participants also produced healthcare savings with six earning shared savings payments by cutting healthcare costs outside of a minimum savings rate.

On the quality front, the MSSP ACOs improved on 84% of the quality measures reported from 2014 to 2015. Participating providers are judged on their performance and improvement by a variety of metrics.

Despite many bumps in the road, Pioneer Accountable Care Organizations and the Medicare Shared Savings Program have saved taxpayers $1.29 billion in four years and improved patient outcomes, the federal Centers for Medicare and Medicaid Services announced Thursday.

Both the Medicare Shared Savings Program and the Pioneer ACO model resulted from the 2010 Affordable Care Act. When an ACO exceeds quality and financial thresholds – demonstrating achievement of high-quality care and wiser spending of health care dollars – it is able to share in the savings generated for Medicare.