89 accountable care organizations join Medicare Shared Savings Program

The number of accountable care organizations in Medicare’s Shared Savings Program will grow by 89 in January 2015, the Centers for Medicare and Medicaid said this week, boosting the total participants to 405.

Participating ACOs will now serve more than 7.2 million patients.

ACOs enrolled in the program earn a percentage of savings in the form of Medicare payments for hitting quality of care and patient health benchmarks. The program also mandates ACOs share in some of the risk, which could lead to penalties if patient health falls below program standards.

CMS Deputy Administrator Sean Cavanaugh announced the new ACOs in a blog post on the department’s website, where he touted the program’s success. For example, participating ACOs saw improvement in 30 out the 33 quality measures in the first two years after enrolling.

“In 2014 alone, existing Shared Savings Program ACOs added almost 17,000 healthcare providers, and the 89 new ACOs will bring approximately 23,000 additional physicians and other providers into the ACO program starting Jan. 1,” he said.

Cavanaugh also said the program has yielded $417 million in savings between the SSP and the Pioneer ACO program, a separate savings model for organizations that have more experience in coordinated care. More than 50 ACOs across the United States earned payouts in the program in 2014, with Texas-based Memorial Hermann Accountable Care Organization leading the list with more than $28 million in payments.

[ALSO: 10 ACOs that earned the largest  payouts in 2014]

“Ultimately, today’s announcement is about delivering better care, spending dollars more wisely, and having healthier people and communities,” he said. “ACOs drive progress in the way care is provided by improving the coordination and integration of health care, and improving the health of patients with a priority placed on prevention and wellness.”

Earlier in December, CMS proposed to change the rules for participating ACOs to entice more organizations to take on risk associated with the Shared Savings Program. Notably, CMS would extend by three years the time before an organization faces penalties for poor care. By accepting that extension, ACOs would see only 40 percent of the Medicare savings they generate paid back to them, as opposed to the 50 percent they receive now.

[DETAILS: CMS proposes rule changes for accountable care organizations]

The 89 new ACOs come from a broad mix of U.S. states. See the full list supplied by CMS below: