ACOs Generated Billions in Shared Savings in 2020
Despite the pandemic, accountable care organizations (ACOs) generated $4.1B in gross savings in 2020, which is nearly double the amount in 2019
Sept 9, 2021 – The Centers for Medicare & Medicaid Services (CMS) recently announced the results of the Shared Savings Program during the calendar year 2020. In total, 513 ACOs reconciled in performance year 2020. Of these, 67% of ACOs featured shared savings.
Despite the COVID-19 pandemic, Accountable Care Organizations (ACOs) that participated in the Medicare Shared Savings Program in 2020 earned performance payments, also known as shared savings, totaling nearly $2.3 billion. The ACOs also saved Medicare approximately $1.9 billion. This is the fourth year in a row with net savings for Medicare.
“Accountable Care Organizations are an Affordable Care Act success story,” said CMS Administrator Chiquita Brooks-LaSure. “The 2020 Shared Savings Program results continue to demonstrate the impact ACOs have in improving quality and lowering health care costs. The Biden-Harris Administration is committed to a health care system that delivers high quality, affordable, equitable, and person-centered care. CMS is similarly committed to moving health care providers to value-based payment and looks forward to partnering with the ACO community in a continued effort to advance these goals and promote affordability and sustainability.”
Shared Savings Program Details
The Shared Savings Program was established by the Affordable Care Act. It promotes accountability for patients and fosters coordination of services under Medicare Parts A and B. The program is also designed to lower healthcare expenditures.
Shared Savings Program ACOs are groups of hospitals, doctors, and healthcare providers that join together to provide high-quality care to Medicare beneficiaries. The goal is to deliver quality care at the right time while also avoiding duplication of services and medical errors.
ACOs With the Most Shared Savings in 2020
Performance data recently released by CMS for participants Medicare Shared Savings Programs shows the top 10 ACOs with the highest shared savings. They are as follows:
- Palm Beach Accountable Care Organization – $54.3 million
- Steward National Care Network, Inc. – $51.5 million
- Baylor Scott & White Quality Alliance – $47.1 million
- Mass General Brigham ACO, LLC – $46.7 million
- Priva Quality Network, LLC – $42.2 million
- Millennium Accountable Care Organization, LLC – $40.6 million
- Advocate Physician Partners Accountable Care, Inc. – $37.5 million
- Silver State ACO LLC – $32.7 million
- Mercy Health ACO, LLC – $29.6 million
- Health Connect Partners, LLC – $26.1 million
For more information on the Shared Savings Program, please visit https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/sharedsavingsprogram.
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