Medicare Shared Savings Program accountable care organizations generated $5.2 billion in savings last year, the highest level since the program launched more than a decade ago, the Centers for Medicare and Medicaid Services announced Tuesday.
These ACOs saved Medicare $2.1 billion in 2023, up 16.7% from the $1.8 billion in savings recorded the previous year, CMS said in a news release. Doctors, hospitals and other providers that collaborated in Medicare Shared Savings ACOs earned $3.1 billion in performance bonus payments last year, compared with $2.5 billion in 2022.
Related: How Biden transformed Medicare Advantage
ACO performance improved on quality measures, including ones linked to diabetes and blood pressure control, breast cancer and colorectal cancer screening, and screening for future fall risk, CMS said.
“We continue to be encouraged and inspired by seven consecutive years of savings and high-quality care, with 2023 being the strongest year of performance to date,” Dr. Meena Seshamani, deputy administrator of CMS and director of the Center for Medicare, said in the release. “We are taking steps to continue to grow this impactful program to ensure those we serve have access to high-quality, affordable healthcare, no matter where they live.”
Primary care provider-led ACOs garnered higher net per capita savings than those with fewer primary care clinicians, according to CMS.
Citrus ACO of Lecanto, Florida, reported the highest savings rate at 19.4%, or $13.7 million, for its nearly 6,900 members, according to CMS data.
Participation in the value-based payment program is also increasing. As of January, there were 480 Shared Savings Program ACOs. That’s up 5.3% from the 456 participants at the start of 2023. Still, participation falls short of the 517 Medicare Shared Savings Program ACOs in 2020.
At the start of this year, nearly 11 million Medicare members were receiving care from an ACO. CMS continues to aim for all people with traditional Medicare to be in an accountable care relationship by 2030, the agency said.
The National Association of Accountable Care Organizations cheered the results.
“NAACOS celebrates these achievements as testament to the impact of accountable care and the dedication of clinicians to advancing value and quality for millions of beneficiaries across the nation,” Aisha Pittman, senior vice president of government affairs, said in a news release.
