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CMS finalizes changes to ACO cost targets
Modern Healthcare

The CMS has finalized changes to the way it evaluates whether Medicare accountable care organizations are saving money, responding to persistent complaints that the program was harder for efficient providers because they had to compete against their own success. Under the revised methodology (PDF), the agency will adjust cost benchmarks based on regional rather than national spending data when an ACO signs up for a second or subsequent three-year contract period. The change is intended to measure participants’ success against other providers in the same region rather than an ACO’s own past performance.