CMS launches new Advance Payment ACO Model
On Aug. 1, CMS will begin accepting applications for a new round of Advance Payment Model ACOs that would begin Jan. 1, 2013. The Advance Payment Model is designed for physician-based and rural providers who have come together voluntarily to give coordinated high quality care to the Medicare patients they serve.
Through the Advance Payment ACO Model, selected organizations will receive an advance on the shared savings they are expected to earn. According to CMS, participating ACOs will receive three types of payments:
- An upfront, fixed payment;
- An upfront, variable payment based on the number of its historically-assigned beneficiaries; and
- A monthly payment of varying amount depending on the size of the ACO.
The Advance Payment ACO Model is open only to two types of organizations:
- ACOs that do not include any inpatient facilities and have less than $50 million in total annual revenue.
- ACOs in which the only inpatient facilities are critical access hospitals and/or Medicare low-volume rural hospitals and have less than $80 million in total annual revenue.