Although Next Generation ACOs have performed well in their first year, health IT challenges like interoperability may be standing in their way of achieving greater success, according to a CMS evaluation prepared by NORC at the University of Chicago.
CMS launched the Next Generation ACO models in 2016 under the vision that providing strong financial incentives and adequate support tools would drive down costs for Medicare fee-for-service beneficiaries. The initial cohort comprised 18 NGACOs.
CMS data shows that the 2016 NGACOs generated $62 million in net savings to Medicare while maintaining quality of care, according to the report. In other words, the first cohort reduced its spending by approximately $100 million — a 1.7 percent decline — or a decrease of $11.20 per beneficiary per month.