Medicare Shared Savings Program

What is the Medicare Shared Savings Program?

The Medicare Shared Savings Program allows providers and suppliers (e.g., hospitals, physicians, and others with a role in patient care) to create an Accountable Care Organization (ACO).

An ACO takes on all accountability for the cost, quality, and experience of care for an assigned Medicare fee-for-service (FFS) beneficiary population.

The Medicare Shared Savings Program is entirely voluntary, but it allows groups of healthcare providers to give coordinated, high-quality care to Medicare beneficiaries through their ACO.

What are the benefits of the Medicare Shared Savings Program for healthcare?

The Shared Savings Program helps to move the Centers for Medicare & Medicaid Services (CMS) payment system toward prioritizing value and outcomes instead of volume.

This means that this payment method promotes accountability for a patient population and encourages investment in high-quality and efficient services in order to improve patient outcomes.

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