RevCycle Intelligence May 4, 2023
ACOs that entered MSSP after regionalized benchmarks were introduced had baseline spending deviations that were 3.5 times lower than ACOs entering before the change, indicating fewer participating higher-spending ACOs.
After CMS began incorporating regional spending into accountable care organization (ACO) benchmarks in the Medicare Shared Savings Program (MSSP), more higher-spending ACOs exited the program, a study published in Health Affairs found.
ACO benchmarking methodology can help incentivize or dissuade participation. Basing benchmarks on average risk-adjusted spending in the ACO’s region can incentivize providers with already lower risk-adjusted spending. This can lead to providers receiving bonuses without improving care quality and disincentivizes providers with higher risk-adjust spending.
Basing benchmarks on ACOs’ historical spending and adjusting for changes in ACO composition can...
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