2.4 million people with Medicare to receive better, more coordinated care

On July 9, HHS Secretary Kathleen Sebelius announced that as of July 1, 89 new 
Accountable Care Organizations (ACOs) began serving 1.2 million people with 
Medicare in 40 states and Washington, D.C. ACOs are organizations formed by 
groups of doctors and other health care providers that have agreed to work 
together to coordinate care for people with Medicare.

These 89 new ACOs have entered into agreements with CMS, taking responsibility 
for the quality of care they provide to people with Medicare in return for the 
opportunity to share in savings realized through high-quality, well-coordinated 
care.

Participation in an ACO is purely voluntary for providers. The Medicare Shared 
Savings Program (MSSP), and other initiatives related to ACOs, is made possible 
by the 2010 Affordable Care Act. Federal savings from this initiative could be 
up to $940 million over four years.

The 89 ACOs announced on July 9 bring the total number of organizations 
participating in Medicare shared savings initiatives to 154, including the 32 
ACOs participating in the testing of the Pioneer ACO Model by CMS's Center for 
Medicare and Medicaid Innovation (Innovation Center) announced last December, 
and six Physician Group Practice Transition Demonstration organizations that 
started in January 2011. In all, as of July 1, more than 2.4 million 
beneficiaries are receiving care from providers participating in Medicare 
shared savings initiatives.

The selected ACOs operate in a wide range of areas of the country and almost 
half are physician-driven organizations serving fewer than 10,000 
beneficiaries, demonstrating that smaller organizations are interested in 
operating as ACOs. Their models for coordinating care and improving quality 
vary in response to the needs of the beneficiaries in the areas they are 
serving.

To ensure that savings are achieved through improving care coordination and 
providing care that is appropriate, safe, and timely, an ACO must meet quality 
standards. For 2012, CMS has established 33 quality measures relating to care 
coordination and patient safety, appropriate use of preventive health services, 
improved care for at-risk populations, and patient and caregiver experience of 
care.

Beginning this year, new ACO applications will be accepted annually. The 
application period for organizations that wish to participate in the MSSP 
beginning in January 2013 is from August 1 through September 6, 2012. More 
information, including application requirements, is available on the Shared 
Savings Program 
Application<http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/sharedsavingsprogram/Application.html>
 web page.

To learn more about the ACOs announced today, see the Fact 
Sheet<http://www.cms.gov/apps/media/press/factsheet.asp?Counter=4405&intNumPerPage=10&checkDate=&checkKey=&srchType=1&numDays=3500&srchOpt=0&srchData=&keywordType=All&chkNewsType=6&intPage=&showAll=&pYear=&year=&desc=&cboOrder=date>.

Full text of this excerpted CMS press 
release<http://www.cms.gov/apps/media/press/release.asp?Counter=4404&intNumPerPage=10&checkDate=&checkKey=&srchType=1&numDays=3500&srchOpt=0&srchData=&keywordType=All&chkNewsType=1%2C+2%2C+3%2C+4%2C+5&intPage=&showAll=&pYear=&year=&desc=&cboOrder=date>
 (issued July 9).


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