Interim evaluation finds many ACOs slowed spending

Many Pioneer and Medicare Shared Savings Program (MSSP) accountable care organizations (ACOs) slowed spending during their first year, according to Centers for Medicare & Medicaid Services’ (CMS) interim findings for MSSP ACOs and an independent evaluation of Pioneer ACOs.  

In their first year, nearly half (54 out of 114) of MSSP ACOs experienced lower expenditures than projected. Of these 54 ACOs, 29 generated savings totaling more than $129 million. In total, ACOs generated $128 million in net savings for the Medicare Trust Funds, according to the CMS interim findings.

The agency noted in its announcement that these ACOs are designed to achieve savings over several years and that interim results are within the range originally projected for the program’s first year. “It’s a strong start this early in the program,” CMS wrote.  Final performance year-one results will be released later this year.   

An independent preliminary evaluation of the Pioneer ACO Model revealed a gross savings of $147 million in their first year. Of the 23 Pioneer ACOs, nine had “significantly lower spending growth” relative to Medicare fee for service while exceeding quality reporting requirements, the agency said.

“These savings far exceed findings from a previous analysis conducted by CMS, which used a different methodology,” according to the announcement.

CMS also released results for the Physician Group Practice Demonstration initiatives. Seven out of 10 physician group practices earned a shared total of $108 million in savings payments over the course of the five-year demonstration.