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Wanted: Organizations Willing to test ACO Advanced Payment Model

27 June 2012
It’s not too late for organizations interested in becoming an Advanced Payment Model Accountable Care Organization (ACO).  The Centers for Medicare and Medicaid Services (CMS) has announced it will accept a third round of applications to test the Advanced Payment Model for ACOs participating in the Medicare Shared Savings Program.
Wanted: Organizations Willing to test ACO Advanced Payment Model

As part of CMS’s larger effort to achieve high quality care while containing costs, CMS is partnering with groups of health providers – Accountable Care Organizations – who assume responsibility for coordinating care for a specified group of patients and in return receive a share of generated savings. The Advanced Payment Model is designed for organizations that require prepayment of the expected shared savings in order for the organization to build their capacity to participate in the ACO program. 

CMS intends to use this newly announced performance period, along with the two previously announced performance periods, to “test whether and how prepaying a portion of future shared savings could increase participation in the Medicare Shared Savings Program, and whether advance payments will enhance the ability of ACOs to effectively coordinate care and generate Medicare savings, as well as the speed at which they attain that goal.”  More information on the model can be found at the Advance Payment Model website.

This latest performance period will begin January 1, 2013, with applications accepted between August 1, 2012 and September 19, 2012.  Interested organizations must also apply to the Medicare Shared Savings Program.


Lindsey Murtagh

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