Accountable care organizations in the Medicare Shared Savings Program generated $1.19 billion in total net savings to Medicare in 2019, the third and largest annual savings for the program to date, Centers for Medicare & Medicaid Services Administrator Seema Verma announced yesterday.

“Consistent with prior years, ACOs with shared savings continued to reduce post-acute care spending, along with hospitalizations and emergency department visits,” Verma said, adding that while ACOs with more experience continued to achieve greater savings, new entrant ACOs for the first time achieved lower spending relative to their benchmarks in their first performance year.

“America’s hospitals and health systems continue to support the Medicare Shared Savings Program as a way to advance their ongoing efforts to transform the delivery system and increase value for patients and communities,” said Shira Hollander, AHA senior associate director of policy. “The AHA and our members are pleased to see the MSSP achieve savings for a third consecutive year and look forward to continuing to work with CMS to ensure hospitals and health systems have the tools they need to improve patient care. The AHA is also working with Congress to maximize the potential of the MSSP through our support of the VALUE Act, and we thank Representatives Welch, LaHood and DelBene for introducing this important bill.”

The 2019 performance results are posted on the MSSP website

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