NEJM study says independent physician ACOs saved Medicare more than hospital-integrated ACOs

Fierce Healthcare September 6, 2018
Rose Meltzer

Physician group ACOs spent $300 less than providers that weren’t in an ACO.

The number of independent physician practices is decreasing as hospital groups constantly acquire and consolidate them. In 2012, nearly half of physicians worked at independent practice; by 2016, fewer than a third did (PDF).

But physician groups can play an integral role in decreasing Medicare spending, according to a study released Wednesday in the New England Journal of Medicine (NEJM).

Using Medicare claims data, the researchers found physician group ACOs spent $300 less per beneficiary compared to physician groups not in ACOs. Hospital-integrated ACOs also spent less than hospitals not in ACOs, though only $37 per beneficiary.

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