Government Healthcare Policy, Business and Technology

Medicare Pioneer ACOs Saved $118M in First Year

Healthcare Informatics: A study on the Medicare Pioneer Care Organizations (ACOs) showed that while the program achieved a savings of $118 million in its first year, adjustments are necessary for its success going going forward.

Researchers at Harvard Medical School found that spending reductions associated with the first year of the Pioneer ACO program amounted to $76 million in bonuses paid to ACOs by the Centers for Medicare and Medicaid Services (CMS) and a $42 million for Medicare, for a total of $118 million. However, they note that program needs tweaking, citing the 13 ACOs that dropped out of the program after 2012, despite achieving savings that were similar to those that stayed in the program.

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