Hospital ACOs raised Medicare spending 0.8% under ACO REACH: 8 notes

The third annual evaluation from CMS reveals that health system-led Accountable Care Organizations (ACOs) raised Medicare spending by 0.8% over the first three years of the ACO REACH program, whereas independent physician-led ACOs managed to cut spending by the same percentage, totaling a combined swing of about $285 million. This divergence highlights the varying impacts of different ACO structures on Medicare costs, underscoring the complexity of healthcare delivery models and their financial implications. This insight is crucial for policymakers and healthcare providers as they navigate the balance between cost management and quality of care in the evolving healthcare landscape.