HPC-Certified Accountable Care Organizations in Massachusetts
Massachusetts has been a leader in promoting value-based care delivery.1 Physicians, hospitals, and other health care providers in the Commonwealth have come together and formed accountable care organizations (ACOs) to more effectively advance better health and better care at lower costs. ACOs contract with commercial and/or public payers under global budget-based risk contracts (“risk contracts”) in which the ACO is typically expected to keep annual per member spending within a fixed budget. ACOs also have the opportunity to earn financial incentives for meeting quality performance targets.
In 2017, the Massachusetts Health Policy Commission (HPC) launched a first-in-the-nation set of statewide multi-payer standards for ACOs. The HPC’s ACO Certification program standards require that ACOs demonstrate capabilities in delivery of cross-continuum care, implementation of performance improvement activities and population health management programs, and participatory governance that includes patient or consumer representation.
This DataPoints issue provides key facts about the 14 ACOs that were recertified by the HPC in December 2019 (“certified ACOs”),2 with a focus on their risk contracts, approaches to provider compensation, and delivery system improvement efforts. More background information about ACOs in Massachusetts can be found in other HPC publications, including the ACO Profiles and Transforming Care Policy Briefs. These publications, based on data from the HPC’s ACO Certification program, aim to promote transparency and contribute to public understanding of the evolving care delivery system in Massachusetts.
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