Skip to main content
Sister Publication Links
  • ESG: THE NEW IMPERATIVE
Subscribe
  • My Account
  • Login
  • Subscribe
  • News
    • Current News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Digital Health
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
  • Data/Lists
    • Rankings/Lists
    • Interactive Databases
    • Data Points
  • Op-Ed
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Awards
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
    • Women in Healthcare
    • - Luminaries
    • - Top 25 Diversity Leaders
    • - Leaders to Watch
    • - Luminaries
    • - Top 25 Women Leaders
    • - Women to Watch
  • Events
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Custom Media Event: ESG Summit
    • Transformation Summit
    • Women Leaders in Healthcare Conference
    • Social Determinants of Health Symposium
    • Leadership Symposium
    • Health Care Hall of Fame Gala
    • Top 25 Women Leaders Gala
    • Best Places to Work Awards Gala
    • Top 25 Diversity Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Supply Chain Revenue Cycle
    • - Hospital at Home
    • - Workplace of the Future
    • - Strategic Marketing
    • - Virtual Health
  • Listen
    • Podcast - Next Up
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Medicare
February 22, 2022 05:06 PM

CMS ends ACO track in rural pay transformation model

Maya Goldman
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Rural-health-sp-rep_i.jpg
    Getty Images

    The Centers for Medicare and Medicaid Services eliminated a program meant to increase the adoption of Accountable Care Organizations in rural areas, the agency announced Tuesday afternoon.

    On the agency's website, CMS cites "broader efforts underway" as its reasoning for removing the ACO Transformation Track, which was part of an alternative payment demonstration for rural health system transformation, known as the Community Health and Rural Transformation Model. The Trump administration's Center for Medicare and Medicaid Innovation announced the model in 2020.

    CMS said in an emailed update on the program that it remains invested in creating opportunities to spur ACO adoption in rural communities. According to the email, the agency is developing a vision and strategy for accountable care, as it will look at lessons from the previous ACO Investment Model to inform future policies. It also expects to announce additional proposals soon.

    CMS did not respond by publication to questions about the end of the program.

    The next ACO proposals from CMS will likely focus on broader health equity, rather than geography, said David Pittman, senior policy advisor at the National Association of ACOs.

    Download Modern Healthcare’s app to stay informed when industry news breaks.

    CMS said in an emailed update on the program that it remains
    invested in creating opportunities to spur ACO adoption in rural communities

    "Despite today's announcement, NAACOS remains optimistic that CMS will soon launch more options to encourage ACO participation... the administration recognizes the value of ACOs and has stated their commitment to increase MSSP participation, which is critical for reaching their goals of expanding value-based care to all Medicare beneficiaries," the organization said in a statement.

    CMS originally slated the ACO Transformation Track to begin January 2022, but regulators delayed applications in March 2021, after the Biden team took over the agency. The agency has moved forward with the model's separate Community Transformation Track.

    The ACO Transformation Track would have given rural ACOs upfront payments of at least $200,000 per beneficiary, along with monthly prospective payments for each beneficiary, for two years if they took part in the Medicare Shared Savings Program and CHART Model. CMS had planned to allow up to 20 rural ACOs to join the track.

    ACO adoption has lagged in rural areas, according to Health Affairs. The ACO Investment Model experimented with using pre-paid shared savings to incentivize ACO formation in rural and underserved areas and encourage current participants to take on more financial risk. Researchers estimated the model saved Medicare about $381.5 million over three years, but noted that most participants exited the program when the time came to assume downside financial risk.

    Participation in the Medicare Shared Savings Program has been tepid over the past couple years in general, with participation growing slightly in 2022, compared to last year, but still not reaching 2020's levels.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    medicare-and-money_i.png
    Go-broke dates pushed back for Social Security, Medicare
    NEWS_170629978_AR_0_NMRDBUKNFMDU.jpg
    CMS to adjust Medicare premiums in 2023 due to lower Aduhelm costs
    Sponsored Content
    Daily Dose Newsletter: Sign up to receive a late afternoon weekday roundup of that day’s breaking news and developments in healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Digital Health
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Data/Lists
      • Rankings/Lists
      • Interactive Databases
      • Data Points
    • Op-Ed
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Awards
      • Nominate/Eligibility
      • 100 Most Influential People
      • 50 Most Influential Clinical Executives
      • Best Places to Work in Healthcare
      • Excellence in Governance
      • Health Care Hall of Fame
      • Healthcare Marketing Impact Awards
      • Top 25 Emerging Leaders
      • Top 25 Innovators
      • Diversity in Healthcare
        • - Luminaries
        • - Top 25 Diversity Leaders
        • - Leaders to Watch
      • Women in Healthcare
        • - Luminaries
        • - Top 25 Women Leaders
        • - Women to Watch
    • Events
      • Conferences
        • Transformation Summit
        • Women Leaders in Healthcare Conference
        • Social Determinants of Health Symposium
        • Leadership Symposium
      • Galas
        • Health Care Hall of Fame Gala
        • Top 25 Women Leaders Gala
        • Best Places to Work Awards Gala
        • Top 25 Diversity Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain Revenue Cycle
        • - Hospital at Home
        • - Workplace of the Future
        • - Strategic Marketing
        • - Virtual Health
      • Webinars
      • Custom Media Event: ESG Summit
    • Listen
      • Podcast - Next Up
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing