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January 31, 2014 at 10:25 AM
Accountable care organizations created under the Patient Protection and Affordable Care Act are saving money already, the administration said this week.
The Centers for Medicare & Medicaid Services announced Thursday that overall savings for Medicare’s ACOs exceed $380 million over the past year.
“These innovative programs are showing encouraging initial results, while providing valuable lessons as we strive to improve our nation’s health care delivery system,” HHS Secretary Kathleen Sebelius said in a statement.
Under the ACO model — which brings together groups of hospitals, doctors and other health providers to direct patient care — organizations are paid for caring for a pool of patients rather than by procedure. Groups receive a percentage of the savings they generate for Medicare as an incentive for keeping costs low.
The initiative is a critical component of the Patient Protection and Affordable Care Act.
The findings, Sebelius said, “demonstrate that organizations of various sizes and structures across the country are working with their physicians and engaging with patients to better coordinate and deliver high quality care while reducing expenditure growth.”
