Physician-led accountable care organizations generated nearly seven times more savings for Medicare last year compared to more high-revenue ACOs typically led by hospitals, a new analysis finds.
The analysis released Tuesday from the consulting firm Avalere found that low-revenue ACOs, which are typically led by physicians, generated $180 in Medicare savings per beneficiary in 2018. High-revenue ACOs, which are typically led by hospitals or health systems, generated $26 per beneficiary.
“All ACOs strive to reduce spending while improving quality in the new value-based world,” said John Feore, associate principal at Avalere, in a statement. “However, the financial incentives to reduce hospital spending are stronger for ACOs that don’t receive a substantial amount of revenue from hospital admissions.”