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ACOs, Population-Based APMs Most Effective at Lowering Costs
RevCycle Intelligence November 18, 2020
An assessment of over a dozen CMS initiatives over the past 8 years shows that population-based alternative payment models, like ACOs, saved Medicare the most money.
If CMS aims to lower healthcare costs and improve quality, then the agency should use more population-based alternative payment models, like accountable care organizations (ACOs), according to a new analysis.
The analysis of the evaluations for more than a dozen CMS value-based initiatives over the past eight years showed that no other alternative payment model came close to the cost savings associated with ACO models.
For example, the Medicare Shared Savings Programs has demonstrated significant savings ($1.2 billion in 2019), as has the Next Generation ACO Model ($62 million in Performance Year 1). Meanwhile,...
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