Just after the Centers for Medicare and Medicaid Services proposed overhauling Accountable Care Organizations (ACOs), the CMS shared on Thursday that Medicare ACOs had made $1.1 billion from 2017 in savings. Of that $1.1 billion in savings, the CMS allocated $780 million with the Medicare ACOs, leaving the CMS with $313.7 million.
The CMS recently claimed that the ACO program was not making enough savings, also claiming that ACOs were not transitioning to risk-based contracts quickly. This tough and timely situation was costing the CMS money, with $39 million lost in 2016 by the Medicare ACO program payouts.
The savings from the Medicare ACOs were due to the fact that most ACOs still in the program were experienced and were joining risk-based contracts. The majority of Medicare ACOs, about 92% are in Track 1, with 1.3% in Track 2 and 7% Track 3.
Read the original article from Modern Healthcare here.