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New ACO Investment Model Offers Upfront Savings

The Centers for Medicare & Medicaid Services (CMS) has announced the ACO Investment Model, a new accountable care organization (ACO) model that will allow pre-paid shared savings. To encourage providers in rural and underserved areas to form ACOs  and to promote participation in ACO models with greater financial risk, this new model will provide ACOs both upfront and ongoing savings per beneficiary per month. These payments will help providers pay for the administrative costs of forming an ACO.

to be eligible, ACOs must participate in the Medicare Shared Savings Program and cannot be owned or operated by a health plan. In selecting participants for the ACO Investment Model, CMS will target new ACOs serving rural areas, areas of low ACO penetration, and existing ACOs seeking to move to higher risk tracks. Applications will be accepted online from July 1 to July 31.

Please contact Maryellen Guinan, Esq., policy analyst, at or 202.495.3354 with any questions.


About the Author

Matt Buechner is the policy and advocacy associate for America's Essential Hospitals.

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