CHQPR January 4, 2019
The Failure of Current Alternative Payment Models
Despite high hopes that Alternative Payment Models (APMs) would achieve significant savings for payers and better quality care for patients, most of the APMs implemented to date have had disappointing results.
The largest APM in the nation is the Medicare Shared Savings Program (MSSP). Debates among statisticians about how much savings have been achieved by Accountable Care Organizations in the MSSP have obscured the fact that even the most optimistic analyses show net savings of only $29 per beneficiary per year (one-quarter of one percent) during the first four years of the program (2013-16), and savings in 2017 were only slightly higher.
The poor performance of current APMs is not surprising...
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