CMS unveils new investment model to advance ACOs

Laura Pedulli | | Health Exec | Economics

The Centers for Medicare & Medicaid Services has launched a new initiative to encourage new accountable care organizations (ACOs) to form in rural and underserved areas and current Medicare Shared Saving Program (MSSP) ACOs to transition to arrangements with greater financial risk.

CMS’ ACO Investment Model was developed to allay concerns that providers lack adequate capital to implement population care management by providing support to certain ACOS for infrastructure investments. In total, the effort will provide $114 million in funding. The agency will lend support to two distinct groups:

  • New MSSP ACOs joining in 2016 – The model seeks to encourage ACOs in rural areas with little or no ACO activity by offering pre-payment of shared savings both upfront and ongoing per beneficiary per month payments.
  • ACOs that joined MSSP in 2002, 2013 and 2014 – To help ACOs succeed and encourage progression to higher levels of financial risk.

Learn more about eligibility criteria. Applications will be accepted between Oct. 15 and Dec. 1.

Laura Pedulli

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