CMS proposes new benchmarks for measuring ACO performance

The Centers for Medicare & Medicaid Services (CMS) has proposed changes to the way it measures performance of accountable care organizations (ACOs) in its Medicare Shared Savings Program.

CMS’ proposal includes measuring ACO performance by using benchmarks based on regional fee-for-service expenditures, rather than the ACO’s historic performance. CMS would also adjust an ACO’s rebased benchmark when it enters a second or subsequent agreement period by a percentage (increased over time) of the difference between fee-for-service spending in the ACO’s regional service area and the ACO’s historical spending. There will be a phase-in period for implementation.

The current performance measurement process has been a point of contention for some ACOs, as the benchmarks used measure the historical performance of the ACOs against themselves, resulting in little to no shares in savings.

CMS is accepting public comment on the proposal through March 28.