• Press Releases

    New Affordable Care Act tools and payment models deliver $372 million in savings, improve care

    October 7, 2014

    September 17, 2014  –  The Centers for Medicare & Medicaid Services (CMS) today issued quality and financial performance results showing that Medicare Accountable Care Organizations (ACOs) have improved patient care and produced hundreds of millions of dollars in savings for the program.

    In addition to providing more Americans with access to quality, affordable health care, the Affordable Care Act encourages doctors, hospitals and other health care providers to work together to better coordinate care and keep people healthy rather than treat them when they are sick, which also helps to reduce health care costs. ACOs are one example of the innovative ways to improve care and reduce costs.  In an ACO, providers who join these groups become eligible to share savings with Medicare when they deliver that care more efficiently.
    ACOs in the Medicare Shared Savings Program (Shared Savings Program) and Pioneer ACO Model generated over $372 million in total program savings for Medicare ACOs.  The encouraging news comes from preliminary quality and financial results from the second year of performance for 23 Pioneer ACOs, and final results from the first year of performance for 220 Shared Savings Program ACOs.
    Meanwhile, the ACOs outperformed published benchmarks for quality and patient experience last year and improved significantly on almost all measures of quality and patient experience this year. (Please see the accompanying fact sheet for additional details.)

    “We all have a stake in improving the quality of care we receive, while spending our dollars more wisely,” Health and Human Services Secretary Sylvia M. Burwell said.  “It’s good for businesses, for our middle class, and for our country’s global competitiveness.  That’s why at HHS we are committed to partnering across sectors to make progress.”

    Millennium Accountable Care Organization is one of the ACOs that are eligible to share in savings.

    “Our team realized that change was coming in health care.  Status quo was no longer acceptable and we needed to prepare for a new way to deliver quality care in a cost effective manner. The collaborative efforts between our Providers, staff and others outside of our organization helped us manage this change, highlighted by this achievement. I’m proud of the entire team’s effort to get to this goal in such a short period of time,” says Geurt Peet, Chief Executive Officer for Millennium Physician Group.

    Additional Resources

    Visit the Medicare Shared Savings Program website to learn more about the program, and for information on ACOs and ACO participants including available financial and quality performance results for ACOs.

    HHS Press Release: New Affordable Care Act tools and payment models deliver $372 million in savings, improve care.

    Fact Sheet: Medicare ACOs continue to succeed in improving care, lowering cost growth.

    Fact Sheet: Delivering Better Care at Lower Cost.

    Secretary’s Blog: Getting More Out of Every Dollar: Improving Health Delivery in America.