August 31, 2015

Most Medicare ACOs received no bonuses in 2014

By: OR Manager
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Editor's Note

Only 97 of 353 Medicare accountable care organizations (ACOs) met targets for quality and slowed spending enough to earn bonuses in 2014, Modern Healthcare reports.

This is a continuation of mixed results for the ACO initiative that the Obama administration has targeted for rapid expansion through 2018. The ratio of ACOs that earned bonuses in 2014 is similar to those in 2013.

The Centers for Medicare & Medicaid Services notes that ACOs with more experience in the program tend to perform better over time. 

Three out of four Medicare accountable care organizations did not slow health spending enough to earn bonuses last year, a continuation of mixed results for an initiative that federal officials have targeted for rapid expansion. Medicare released 2014 results for 353 accountable care organizations, which include hospitals and physician groups that agreed to meet targets for quality and slow spending.

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