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2 studies look at savings from ACOs

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While provider participation in Medicare and Medicaid Accountable Care Organizations may lead to only modest savings at first, the savings grow substantially over time, say two studies.

The first study, led J. Michael McWilliams, M.D., Ph.D., of Harvard Medical School and published in JAMA Internal Medicine,  found that such organizations notably cut post-acute care costs. Between 2012 and 2014,  the 114 ACOs in the research reduced post-acute spending by 9 percent, or just over $100 per beneficiary, compared with a non-ACO control group.

To read the study, please hit this link.

The second study, also published in JAMA Internal Medicine, compared  two Medicaid ACOs, one each  in Colorado and in Oregon.

To read that study, please hit this link.

An editorial accompanying the two articles concluded:

“Accountable care organizations have been established across diverse market settings, using a multitude of organizational structures and approaches to governance and operations, and this heterogeneity is reflected in the heterogeneity of their performance. The 2 articles published in this issue add to a growing body of evidence on overall performance, several dimensions of quality, and spending. Nevertheless, we know little about the effects of ACOs on patients’ health and quality of life. Perhaps most important for ACO leaders and the long-term success of these programs, we know little about the key ACO capabilities that are important to ensuring their success in different organizational or market contexts. Although the Centers for Medicare & Medicaid Services has conducted rigorous evaluations of the Pioneer program, generalizable findings tailored to organizational contexts are few. A long-term commitment to alternative payment model evaluation is necessary to ensure effective, sustainable payment and delivery system reform.”

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