Earned savings of ACOs in Medicare Shared Savings Program 2012-2021

Between 2012/2013 and 2021, the total earned shared savings of Accountable Care Organizations (ACOs) participating in the Medicare Shared Savings Program (MSSP) has increased over seven times from 315 million U.S. dollars to two billion U.S. dollars. Despite the number of Medicare ACOs being lower in 2023 than 2018, the total earned shared savings rose roughly 40 percent. In the performance year 2021, both the number of ACO and the total earned shared savings slightly decreased in comparison to 2020.
ACOs are groups of doctors, hospitals, and other health care providers, who voluntarily collaborating to achieve coordinated enhanced quality of care, reduced costs, and improved health outcomes of a designated patient population. ACOs were introduced as part of the Affordable Care Act to shift the U.S. health system from volume-based care (fee-for-service) to value-based care (alternative payment models). When ACOs participating in MSSP spend less than their target (i.e. saves money for Medicare), they receive a share of the savings, that is if they also pass certain quality measures such as patient/caregiver experience, patient safety etc.