Posted by: RedaChouffani
ACO, advanced funding, advanced payement model, CMS
Department of Human and Health Services (HHS) continues to see a steady interest and participation in the available Accountable Care Organization (ACO) incentive program. There have been 106 new ACOs have been formed, in addition to the more than 250 current ACOs, according to an HHS release.
“Accountable Care Organizations save money for Medicare and deliver higher-quality care to people with Medicare,” Secretary Sebelius said. “Thanks to the Affordable Care Act, more doctors and hospitals are working together to give people with Medicare the high-quality care they expect and deserve.”
Over half of the newly formed ACOs are physician-led organizations, while 20% are community health centers and critical access hospitals.
An additional 35 ACOs will receive advanced funding to invest in their infrastructure, training, and staff as part of the advance payment ACO model. These applicants will receive the following:
- An upfront, fixed payment: Each ACO will receive a fixed payment.
- An upfront, variable payment: Each ACO will receive a payment based on the number of its historically assigned beneficiaries.
- A monthly payment of varying amount depending on the size of the ACO: Each ACO will receive a monthly payment based on the number of its historically assigned beneficiaries.
It is no surprise that the most recent ACOs are located in the Eastern and central part of the country, as these are the regions in which we’ve seen some of the highest numbers of Medicare beneficiaries as listed in State Health Facts website.