CMS redesigns Medicare ACOs to be more appealing to physicians

The Obama administration’s final rule on Medicare accountable care organizations removes several proposed conditions on participants in an effort to make the new shared savings payment model more enticing to physicians and other key players. As many as 270 ACO networks are expected to participate in the Medicare pay model that encourages physicians and hospitals to coordinate patient care in a way that improves quality and saves the program money. From 2012 through 2015, Medicare could save an estimated $1.8 billion and let groups share in $1.3 billion in bonuses for hitting savings targets, thus saving Medicare a net of about $500 million. After criticism about its March 31 proposed rule, CMS released an Oct. 20 final rule that gives physicians the option to join an ACO without being exposed to financial penalties if saving targets are not achieved. CMS also softened program requirements by reducing the number of quality measures physicians must report and removing a condition that at least 50% of participants must satisfy meaningful use standards for electronic medical records.