ACOs are slow to adopt downside risk

Accountable care organizations are a value-based alternative payment model that has leveraged both public and private healthcare payers to lower healthcare costs and improve care quality. However, as the ACO program continues to grow, questions have continued to arise over the need for these organizations to take on downside financial risk in the models.

Only 28% of ACOs formed in 2012 have taken on downside risk, while just 33% had at least one contract with downside risk in 2018, according to a new study published in Health Affairs.

The question of the efficacy of downside risk is also prevalent after CMS finalized changes to the ACO program...