The quest to quell rising health care costs has met its match, as a new study shows accountable care organizations (ACOs) actually produce some savings for CMS but fall short on improving Medicare patient quality of care.
 
A Massachusetts study from 2007 to 2010 featuring a Blue Cross Blue Shield-backed ACO found a 3.4% cost reduction after two years participating in the state’s Alternative Quality Contract (AQC)—an early commercial ACO.  Most of those savings were seen in the second year of participation, the Journal of the American Medical Association study says.
 
“[The ACO’s] providers rewarded physicians or groups for efficient practices, changed referral patterns, engaged in high-risk case management, and redesigned care processes to eliminate waste,” MedPage Today reported. “But the researchers couldn't tie Medicare savings to specific AQC interventions.”
 
Spending was less for Medicare patients, and BCBS patients who saw ACO providers regardless of settings or services but weren’t consistently linked to better care, the study says.
 
However, low-density lipoprotein cholesterol testing for diabetic patients improved, up 3%, and 2.5% for patients with heart disease, the study says.
Even though some ACOs have folded, the new shared-risk and savings model seems to be the way of the future as more physician practices and hospital join forces to maximize cost savings and deliver better care.
 
For more information on ACOs and how they affect your practice, turn to Part B News for tailored guidance.