Medicare ACOs Saved More Than $372 Million, Says CMS

MARIETTA, Ga., Sept. 18, 2014 /PRNewswire/ -- The Centers for Medicare & Medicaid Services (CMS) today issued quality and financial performance results showing that Medicare Accountable Care Organizations (ACOs) have improved patient care and produced hundreds of millions of dollars in savings for the program.

In addition to providing more Americans with access to quality, affordable healthcare, the Affordable Care Act encourages doctors, hospitals and other healthcare providers to work together to better coordinate care and keep people healthy rather than treat them when they are sick, which also helps to reduce healthcare costs. ACOs are one example of the innovative ways to improve care and reduce costs.  In an ACO, providers who join these groups become eligible to share savings with Medicare when they deliver that care more efficiently. 

ACOs in the Medicare Shared Savings Program (Shared Savings Program) and Pioneer ACO Model generated over $372 million in total program savings for Medicare ACOs.  The encouraging news comes from preliminary quality and financial results from the second year of performance for 23 Pioneer ACOs, and final results from the first year of performance for 220 Shared Savings Program ACOs. 

Meanwhile, the ACOs outperformed published benchmarks for quality and patient experience last year and improved significantly on almost all measures of quality and patient experience this year. (Please see the accompanying fact sheet for additional details.)

"We all have a stake in improving the quality of care we receive, while spending our dollars more wisely," Health and Human Services Secretary Sylvia M. Burwell said.  "It's good for businesses, for our middle class, and for our country's global competitiveness.  That's why at HHS we are committed to partnering across sectors to make progress."

Marietta, Ga.-based WellStar Health System is an eligible ACO that will share in the savings.

"At WellStar, our vision is to deliver world-class care," said Val Akopov, M.D., chair of the WellStar Health Network Board, which is the official name of the WellStar ACO.  "The driving force behind everything we do as a community based health system is consistent with the principles of an Accountable Care Organization—providing high quality, cost effective healthcare that improves the health and well-being of the people we serve."

"Our goal is to transform healthcare and create better care at a lower cost," said Jim Budzinksi, president of WellStar Health Network, chief financial officer and executive vice president for WellStar Health System.  "When we applied to become a Medicare ACO back in 2012, I was confident that our physicians, nurses and other care team members would meet the stringent goals and standards of an ACO.  The first year results confirm WellStar is meeting the challenge of caring for our community with innovative solutions."

Since passage of the Affordable Care Act, more than 360 Medicare ACOs have been established in 47 states, serving over 5.6 million Americans with Medicare.  Medicare ACOs are groups of providers and suppliers of services that work together to coordinate care for the Medicare fee-for-service (FFS) beneficiaries they serve and achieve program goals.

SOURCE WellStar Health System