The Patient Protection and Affordable Care Act (ACA) requires the implementation of the Medicare Shared Savings Program. This program is intended to encourage physicians, hospitals, and other health care providers to come together voluntarily to form accountable care organizations (ACOs) to share the responsibility for providing cost-effective and coordinated care to their Medicare patients. Under the ACA, an ACO would agree to manage all of the health care needs of a minimum of 5,000 Medicare beneficiaries for at least three years. In the Medicare context, an ACO that meets established quality and performance standards and surpasses a minimum savings target will be able to share a percentage of savings (in addition to traditional fee-for-service payments under Medicare Parts A and B).
ACS Comment Letters