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Why Do Accountable Care Organizations Leave The Medicare Shared Savings Program?
William K Bleser1, Robert S Saunders2, David B Muhlestein3
1William K. Bleser ( william.bleser@duke.edu ) is a research associate at the Duke-Margolis Center for Health Policy, Duke University, in Washington, D.C.
Accountable Care Organizations (ACOs) in the Medicare Shared Savings Program (MSSP) are more likely to survive if they achieve shared savings, coordinate care, and have higher benchmarks. Policy changes may require more preparation time for ACOs facing downside risk.
Area of Science:
- Health Services Research
- Health Policy
- Healthcare Management
Background:
- Accountable Care Organizations (ACOs) are crucial for healthcare reform, aiming to reduce costs and improve quality.
- Understanding factors influencing ACO survival is vital for program sustainability and effectiveness.
Purpose of the Study:
- To identify key factors associated with the survival of ACOs participating in the Medicare Shared Savings Program (MSSP).
- To inform policy decisions regarding ACO program design and support.
Main Methods:
- Analysis of data from 624 ACOs in the MSSP between 2013 and 2017 (1,849 ACO-years).
- Examined associations between various organizational, financial, and market characteristics and ACO survival rates.
Main Results:
- ACO exits decreased after the third year.
- Factors associated with longer survival included shared-savings bonus achievement, care coordination, higher financial benchmarks, market cost growth, lower-risk patients, and upside-only risk contracts.
- Quality scores and organizational traits did not significantly impact survival.
Conclusions:
- Diverse organizations and markets can succeed in the MSSP.
- Current policy changes may necessitate longer preparation periods for ACOs to manage downside risk.
- Policy makers should enhance support for ACOs, particularly those serving higher-risk populations, and refine benchmarking to ensure fairness across different market cost growth levels.
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