CMS offers pre-paid shared savings for ACOs
The Centers for Medicare and Medicaid Services says its new ACO Investment Model responds to concerns that some providers lack adequate access to investment capital needed to successfully implement population care management. The model offers pre-paid shared savings to encourage new accountable care organizations to form in rural and underserved areas.
The initiative, announced Wednesday, offers up to $114 million in upfront investments to as many as 75 ACOs nationwide. ACOs must apply to CMS for the funding.
“The ACO Investment Model will give Medicare accountable care organizations more flexibility in setting quality and financial goals, while giving them greater accountability for delivering quality care efficiently,” said CMS Administrator Marilyn Tavenner, in a press statement.” We are working with these organizations to make necessary investments that encourage doctors, hospitals and other healthcare providers to work together to better coordinate care and keep people healthy.”
Read more: Medical Practice Insider