ACOs, Population-Based APMs Most Effective at Lowering Costs

If CMS aims to lower healthcare costs and improve quality, then the agency should use more population-based alternative payment models, like accountable care organizations (ACOs), according to a new analysis.

The analysis of the evaluations for more than a dozen CMS value-based initiatives over the past eight years showed that no other alternative payment model came close to the cost savings associated with ACO models.

For example, the Medicare Shared Savings Programs has demonstrated significant savings ($1.2 billion in 2019), as has the Next Generation ACO Model ($62 million in Performance Year 1). Meanwhile, specialty-specific models (e.g., Comprehensive Primary Care, Comprehensive Primary Care Plus) and bundled payment models (e.g., Bundled Payments for Care Improvement, Oncology Care Model) have not demonstrated proven savings.

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