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New beneficiaries are leading to financial woes for hospital ACOs
Modern Healthcare

Hospital-led ACOs may be struggling financially as sicker beneficiaries switch to their care from physician-led ACOs, according to a new analysis.

As Medicare beneficiaries develop more complex diseases, they are more likely to switch from a physician to a hospital-led ACO, according to researchers with the University of Wisconsin Health. That can lead to higher costs for hospital ACOs, which are already under fire from the CMS for not producing similar savings as their physician counterparts.