• Mayo Clinic Community Accountable Care Organization delivers high-quality care, Medicare savings in first year

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ROCHESTER, Minn. — The Mayo Clinic Community Accountable Care Organization (ACO) LLC generated $14.75 million in cost savings, or $29.5 million annualized, to the Medicare program while improving quality of care in 2019. That's according to recently released performance data from the Centers for Medicare & Medicaid Service (CMS).

This was the ACO's first year of participation in the Medicare Shared Savings Program offered by the Center for Medicare and Medicaid Innovation. The program's goal is to accelerate the transformation of health care by offering incentives to provider organizations that meet quality performance criteria and reduce Medicare costs. The performance period was July 1–Dec. 31, 2019.

The Mayo Clinic Community ACO, which includes Mayo Clinic in Rochester and all Mayo Clinic Health System locations in Minnesota and Wisconsin, served nearly 60,000 Medicare beneficiaries in the program in 2019. As part of its program participation, the Mayo Clinic Community ACO reported on a broad range of performance measures, such as preventive health checks, use of an electronic health record system and preventing avoidable hospitalizations. The ACO will receive a shared savings payment of $5.9 million as a result of its ability to provide high-quality care while generating savings for the Medicare program in 2019.

An accountable care organization is a market-based solution to fragmented and costly care that encourages local physicians, hospitals and other providers to work together and take responsibility for improving quality, enhancing patient experience and keeping care affordable. The Medicare Shared Savings Program creates incentives for ACOs to invest in transforming care by allowing them to share in savings they generate after meeting defined quality and cost goals.

"As the Medicare-eligible patient population continues to grow, it is increasingly important for Mayo Clinic to participate in value-based payment reform programs," says Robert Stroebel, M.D., medical director and chair of the Mayo Clinic Community Accountable Care Organization Board. "We are encouraged by the results in our first year. Our experience helps Mayo prepare for the Medicare shift to paying for value rather than volume and participate in government efforts to improve Medicare sustainability."

In 2019, 541 ACOs across the nation participated in the Medicare Shared Savings Program, caring for over 11.2 million beneficiaries and generating net savings of $1.19 billion for the Medicare program, according to CMS.

Visit the CMS data website to see the full 2019 financial and quality performance results for all ACOs in the Medicare Shared Savings Program. Learn more about ACOs on the CMS Innovation Center website and Medicare Shared Savings Program website. And review the Medicare fee-for-service FAQs for more information on the Medicare Shared Savings Program.


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