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Updated: Feb 7, 2026

Author Spotlight: Evaluating Clinicians' Adoption of Ultrasound-Guided Vascular Cannulation Through Simulation Training
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Advanced Alternative Payment Models Part II: Understanding the Next Generation Accountable Care Organization Model.

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    This summary is machine-generated.

    Advanced Alternative Payment Models (APMs) are crucial for healthcare providers. The Next Generation Accountable Care Organization (ACO) Model offers a sophisticated option for experienced organizations in Medicare and Medicaid payment systems.

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    Area of Science:

    • Healthcare Policy
    • Health Economics
    • Medical Payment Models

    Background:

    • The Centers for Medicare & Medicaid Services (CMS) defined Advanced Alternative Payment Models (APMs) in 2016.
    • The Medicare Access and CHIP Reauthorization Act of 2015 introduced the Merit-Based Incentive Payment System (MIPS).
    • Understanding APMs is vital for providers participating in Medicare and Medicaid.

    Purpose of the Study:

    • To review the Next Generation Accountable Care Organization (ACO) Model.
    • To analyze its risk-benefit sharing principles.
    • To inform providers seeking Advanced APMs for 2018 and beyond.

    Main Methods:

    • Review of preliminary CMS definitions for Advanced APMs.
    • Analysis of the Medicare Access and CHIP Reauthorization Act of 2015 provisions.
    • Examination of prior ACO model experiences, including the Medicare Shared Savings Program.

    Main Results:

    • The Next Generation ACO Model is a fully qualifying Advanced APM.
    • It incorporates risk-benefit sharing principles.
    • It is suitable for organizations with substantial ACO experience.

    Conclusions:

    • The Next Generation ACO Model provides a sophisticated pathway for experienced organizations within Advanced APMs.
    • Understanding its risk-benefit structure is key for participation in future payment models.
    • This model allows providers to potentially avoid negative performance adjustments under MIPS.