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Third-Party Convener Firms And The Rise Of Geographically Dispersed, High-Earning Medicare ACOs
Adam A Markovitz1, Jay Shroff2, Andrew Zhang3
1Adam A. Markovitz (amarkov@umich.edu), University of Michigan, Ann Arbor, Michigan.
Health Affairs (Project Hope)
|June 1, 2026
Summary
Third-party conveners are increasingly organizing Accountable Care Organizations (ACOs) in Medicare. These dispersed networks earn more shared savings but show no quality improvements, prompting policy recommendations.
Area of Science:
- Health Policy
- Healthcare Management
- Health Economics
Background:
- Accountable Care Organizations (ACOs) are a key Medicare reform to control healthcare costs.
- ACOs were designed as local, clinically integrated networks for shared patient care.
- Third-party conveners are now central to recruiting clinicians into Medicare Shared Savings Program (MSSP) ACOs.
Purpose of the Study:
- To analyze the impact of third-party conveners on the structure and financial performance of MSSP ACOs.
- To investigate the growth of convener-led and geographically dispersed ACOs.
- To evaluate the relationship between ACO structure (local vs. dispersed, convener-led vs. non-convener-led) and shared savings payments.
Main Methods:
- Analysis of national MSSP data from 2012-2021.
- Examination of beneficiary enrollment in different types of ACOs (convener-led, dispersed).
- Comparison of shared-savings payments across ACO structures, controlling for quality.
Main Results:
- The proportion of beneficiaries in convener-led ACOs increased from 11% to 23% between 2012 and 2021.
- The share of beneficiaries in dispersed ACOs, particularly among convener ACOs, rose significantly from 13% to 42%.
- Dispersed convener ACOs achieved the highest shared-savings payments ($171/beneficiary/year), while local convener ACOs earned the least ($95/beneficiary/year), with no demonstrable difference in quality.
Conclusions:
- Third-party conveners are fundamentally altering the landscape and structure of the MSSP.
- The financial success of dispersed, convener-led ACOs raises questions about care coordination effectiveness.
- Policy interventions are recommended to enhance transparency of convener relationships and refine network definitions to foster genuine coordinated care.
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