The National Association of ACOs sent a letter this week to the Center for Medicare and Medicaid Innovation seeking more information on the future of the direct contracting and Next Generation ACO models.
While industry supported the Direct Contracting Model when it was announced in April 2019, the program has been on an unclear hiatus as the Innovation Center never opened application portal as anticipated in March or offered any additional details on the model.
ACOs want more help from the Trump administration to gain a more solid financial footing amid the novel coronavirus pandemic.
ACOs, whose payments are tied to spending and patient health benchmarks, are asking CMS to give them the option of protection from any financial losses for a reduced shared savings rate no lower than 40%, according to a Thursday letter nine organizations sent to CMS.
Although 45% of ACOs now comprise physician groups without a hospital partnership, the market potential for further growth of physician group-led ACOs is much stronger than for hospital- or health system-led ACOs. Our market potential estimates are admittedly rough and should be viewed as only directionally correct, but they suggest that there is more room for physician-led ACOs to develop than for ACOs that include hospitals...READ MORE
"Fee-for-service is simply not a system this is conducive or amendable to primary care being able to thrive and meet all of its opportunities and needs even in a normal day, and certainly not in a COVID day,"
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