Most Next Gen ACOs achieved bonuses in 2019
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New data shows the majority of accountable care organizations that participate in the Next Generation ACO model achieved savings in 2019.
The data, recently released by the Center for Medicare and Medicaid Innovation, shows just two of the 37 ACOs failed to meet benchmarks and achieve savings in 2019. The Next Generation program actually involves 41 ACOs but four aren’t included in the data set because they deferred financial settlement. CMS said it plans to release 2019 performance results with all 41 ACOs in spring 2021 after the financial settlement is complete.
Overall, the 37 ACOs earned about $461.9 million in shared savings. Medicare saved $204 million after accounting for bonuses, according to the National Association of ACOs.
UT Southwestern Accountable Care Network in Texas earned the most in shared savings, or bonuses, which was $50.6 million.
The two ACOs with losses were HCP California and CoxHealth Accountable Care. HCP owes CMS $9.9 million in shared losses and CoxHealth Accountable Care owes CMS $1.06 million.
The Next Generation ACO model was slated to end in December 2020, but CMS extended it until the end of 2021.
In response to the 2019 performance results, the National Association of ACOs has renewed its calls to make the Next Generation ACO model a permanent part of Medicare as either a standalone program or included in the Medicare Shared Savings Program.
“For every year of the program, Next Gen ACOs yielded savings for Medicare while also showing an improvement in quality. Very few programs CMS has developed over the years can say that,” said Clif Gaus, CEO of NAACOs, in a statement.
The demonstration program has been in effect since 2012.