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Medicare ACOs continue to improve quality of care, generate shared savings

ANN ARBOR, Mich. -- The Centers for Medicare & Medicaid Services has issued 2014 quality and financial performance results showing that more Medicare Accountable Care Organizations (ACOs) continue to generate financial savings while improving the quality of care for Medicare beneficiaries by fostering greater collaboration between doctors, hospitals, and health care providers.

When an ACO demonstrates that it has achieved high-quality care and effectively reducing spending of health care dollars above certain thresholds, it is able to share in the savings generated for Medicare. In 2014, 20 Pioneer and 333 Shared Savings Program ACOs generated more than $411 million in savings, which includes all ACOs savings and losses. The results also show that ACOs with more experience in the program tend to perform better over time.

Medicare ACOs are groups of doctors, hospitals, and other health care providers, who come together voluntarily to provide coordinated high quality care to their Medicare patients. The goal of coordinated care is to ensure that patients, especially the chronically ill, get the right care at the right time, while avoiding unnecessary duplication of services and preventing medical errors. When an ACO exceeds quality and financial thresholds – demonstrating achievement of high-quality care and wiser spending of health care dollars – it is able to share in the savings generated for Medicare.

POM ACO is one of the ACOs that generated shared savings.

“We’re pleased that our second year of teamwork has yielded these results, and yet we know that there is more we can do,” says David Spahlinger, M.D., chair of the POM ACO board and executive director of the U-M Faculty Group Practice. “All of us can take justifiable pride in what we have achieved together. But we know we can perform even better on specific indicators of care quality, and reduce unnecessary hospital readmissions and emergency visits even further.” 

The physician groups participating in POM ACO for 2014 performance year and included in the shared savings distribution are:

  • The University of Michigan Health System
  • Advantage Health/Saint Mary’s Care Network
  • Crawford Mercy Physician Hospital Organization
  • Huron Valley Physicians Association (HVPA)
  • Integrated Health Associates (IHA)
  • Lakeshore Health Network
  • MidMichigan Collaborative Care Organization
  • Oakland Southfield Physicians
  • Olympia Medical Services
  • Physicians’ Organization of Western Michigan (POWM)
  • United Physicians
  • Wexford Physician Hospital Organization


Additional Resources

Visit the Medicare Shared Savings Program  News and Updates webpage to access the HHS press release and fact sheet, the link to the Performance Year 2014 results file, and to learn more about the program.

Visit the U-M Health System's web page about population health to learn about POM ACO's history


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