Medicare Accountable Care Organization Results For 2015: The Journey To Better Quality And Lower Costs Continues
We examined this effect further in a preliminary regression model adjusting for benchmark and population size and found that a significant regional effect persisted. Further analysis is needed to understand the causes of this “Southern effect.” The map in Exhibit 10 shows how the savings rate varies by state.
Exhibit 9. Rates of shared savings in different regions in the country
The South has higher shared savings rates than other geographic regions.
Exhibit 10. Map illustrating the average savings for ACOs in different states
Total Impact
In 2015, beneficiaries in the MSSP cost CMS $72.9 billion dollars against an estimated cost of $73.3 billion for a gross savings of $429 million. However, CMS paid $646 million in shared savings bonus payments to high performing ACOs, leading to a net loss of $216 million, or a loss of slightly less than 0.3 percent.. Contribution to the total impact varied considerably as seen in Exhibit 11. ACOs in the first round (start date of April 2012) saw average savings of over $200 per beneficiary for 2015, while rounds 3-5 collectively realized net losses for the year.
Exhibit 11. Financial impact of the Medicare Shared Savings Program by start date
RoundStart DateAssigned BeneficiariesPercent Savings/LosesNet Savings/Loss
1April 2012351,5851.89%$72,045,856
2July 20121,704,3410.13%$21,966,968
3January 20131,782,013-0.60%$966,509,232
4January 20141,783,929-0.83%$924,902,720
5January 20151,648,365-0.34%$1,019,511,524
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Source: Health Affairs Blog - Category: Health Management Authors: David Muhlestein, Robert Saunders and Mark McClellan Tags: Following the ACA Medicare Organization and Delivery Payment Policy Quality Accountable Care Organizations ACOs MSSP shared savings Source Type: blogs
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