The Department of Health and Human Services created the Medicare Shared Savings Program and accountable care organizations to minimize healthcare spending, yet the programs have cost substantially more than the government anticipated, according to RevCycle Intelligence.
Here are five key points:
1. Forty-five percent of ACOs have cost more than the federal government expected, according to Kaiser Health News.
2. By the end of 2018, HHS set a goal of using 50 percent of Medicare spending toward value-based reimbursement. However, Kaiser reports most physicians are not participating in risk-based contracts.
3. In 2014, seven percent of ACOs opted to participate in risk-based contracts, which would allow them to have a significant reward for quality care while risking financial penalties if they cost Medicare more than expected.
4. HHS predicted the Medicare Shared Savings Program and accountable care organizations would save at least $10 million in 2014.
5. In 2014, the Medicare Shared Savings Program had a net loss of $2.6 million.
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