Home Health & Hospice Week

Industry Note:

Coming ACO Changes Could Affect You

Don’t be surprised to see more pressure from your Accountable Care Organization partners as Medicare pushes them to accept more financial risk.

“Most Medicare ACOs currently do not face financial consequences when costs increase,” the Centers for Medicare & Medicaid Services says in a release about its new ACO redesign. The revamp, called Pathways to Success, “will change this,” CMS says. The changes are included in a final rule released Dec. 21.

Currently more than 10.4 million beneficiaries in Fee-for-Service Medicare (of the 38 million total FFS beneficiaries) receive care from providers participating in a Medicare ACO, CMS adds.

“Medicare can no longer afford to support programs with weak incentives that do not deliver value,” CMS Administrator Seema Verma says in the release. “As we structure new payment arrangements, the impact on the overall market will be top of mind.”

Among the changes are expanded access to telehealth, including in patients’ homes; incentive payments to patients for good health practices; and a shortened participation timeframe before ACOs must accept financial risk. See more details in a fact sheet at at www.cms.gov/newsroom/fact-sheets/final-rule-creates-pathways-success-medicareshared-savings-program.

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