CMS issues final rule on ACOs
On October 20, 2011, CMS published the final rule on Accountable Care Organizations (ACOs) or, as it is formally known, the Medicare Shared Savings Program (the "Program"), enacted as part of the Patient Protection and Affordable Care Act (ACA) of 2010. According to CMS chief Don Berwick, MD, the Program represents an "opportunity to coordinate care among providers," which could "greatly improve the quality of care Medicare beneficiaries receive," and produce substantial savings for the federal government. The Program creates incentives for providers to collaborate in treating an individual patient across care settings, in order to receive a portion of the savings generated from providing such care.
CMS has substantially relaxed the requirements for ACOs originally provided in the proposed rule. Some of the key changes include (among many others):
- Adding a "one-side" risk model, allowing providers to participate in the program without risking a loss in the event their ACO did not produce savings
- "Preliminary perspective assignment" of Medicare beneficiaries, giving ACOs more control over their Medicare beneficiary population
- Reducing the number of performance measures from 65 to 33
- Eliminating the two percent threshold for being eligible for shared savings
CMS will begin taking applications for the program on January 1, 2012, with start dates of April 1 and July 1, 2012.
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