Statement on 2019 Medicare Shared Savings Program ACO Results

By Blair Childs, Senior Vice President, Public Affairs

Premier congratulates the 541 accountable care organizations (ACOs) in the 2019 Medicare Shared Savings Program for achieving the highest net total Medicare savings to date—$1.19 billion—while delivering high-quality care. These impressive results reinforce the innovativeness of America’s healthcare providers as well the value of the ACO model. Premier alliance members have been leading participants in these models from the start and remain committed to delivering cost effective, integrated care to their patients. They are committed to moving from our current fragmented and sickness-based healthcare system to one that rewards quality and health.

While CMS cites better performance of “low-revenue” or physician-led ACOs, our experience has not shown that to be the case. We believe it is important to maintain a level competitive playing field for all ACOs. Model designs that discourage inclusion of hospitals undermine the objective of ACOs, which is to coordinate care across all providers to improve care, as well as potentially jeopardize access to needed patient care.

Changes are needed to speed progression to advanced risk-based models. Congress can further incent providers to participate in ACOs by lowering the APM Incentive Payment thresholds in MACRA to ensure more clinicians have the opportunity to become a Qualifying APM Participant (QP) and participate in Advanced APMs and by extending the 5 percent bonuses available to QPs participating in Advanced APMs. Moreover, Congress should also pass the Rural ACO Improvement Act (2648) / Accountable Care in Rural America Act (H.R. 5212) that would remove an ACOs’ attributed population from the regional benchmark calculation.