Study: Medicare ACOs associated with modest reduction in spending for hospital care

Medicare accountable care organizations are associated with modest reductions in spending and use of hospitals and emergency departments, according to a study published this week by JAMA Internal Medicine. The study compared changes in spending and usage for beneficiaries cared for by ACO physicians and non-ACO physicians between January 2009 and December 2013, including a subgroup of clinically vulnerable beneficiaries. After ACO contract implementation, quarterly spending per beneficiary decreased by $34 in the study’s overall Medicare population and $114 in the clinically vulnerable population, which included patients with conditions such as diabetes, coronary artery disease and congestive heart failure.