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September 02.2025

2 Minutes Read

ACOs in Medicare Shared Savings Program Saved $2.4B in 2024: Here's Why It Matters

ACOs in Shared Savings Program Saved Medicare illustrated by a money bag on chalkboard.

ACOs Proving Their Value in Medicare

In a remarkable achievement, Accountable Care Organizations (ACOs) participating in the Medicare Shared Savings Program saved Medicare an impressive $2.4 billion in 2024. This achievement highlights not only the financial efficacy but also the ongoing evolution of healthcare delivery models aimed at optimizing patient care.

Significant Performance Payments

Out of the 476 ACOs in the Shared Savings Program, 75% earned $4.1 billion in performance payments, indicating a strong performance and commitment to high-quality care. The success rate represents the highest share of ACOs receiving these payments since the program's inception in 2012.

Improving Patient Outcomes

In addition to financial metrics, ACOs significantly improved patient health outcomes. For instance, the percentage of beneficiaries with controlled high blood pressure rose from 77.8% in 2023 to 79.49% in 2024. Moreover, reports indicated better management of hemoglobin A1c levels, a critical factor for diabetes care.

Challenges Faced by Some ACOs

While many ACOs excelled, not all achieved savings. Sixteen organizations collectively owed $20.3 million in shared losses, which serves as a reminder of the ongoing challenges within the healthcare landscape. Such disparities underscore the need for continuous adjustment and responsiveness within ACO frameworks.

Quality Over Quantity: ACOs vs. Traditional Groups

ACOs have consistently outperformed similar physician groups on various quality measures. For instance, they led the way in depression screenings and follow-up plans, scoring 53.5% compared to 44.4%. This success demonstrates the effectiveness of focused and coordinated healthcare delivery.

Future Predictions for the Shared Savings Model

The National Association of ACOs has expressed optimism about the continued success and sustainability of ACOs within the Medicare landscape. As healthcare continuously evolves, ACOs’ ability to innovate will be crucial in adapting to emerging challenges while ensuring that patients receive the best possible care.

As digital health innovators and healthcare IT professionals, staying informed about these trends is vital. The future of healthcare hinges on data-driven insights and responsive care models that prioritize patient experience.

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