Physician Incentives in Accountable Care Organizations ACO's
Two initiatives were launched to encourage physicians to form or join ACOs: the Medicare Shared Savings Program and the Advance Payment model. The Medicare Shared Savings Program will provide financial incentives for physicians to coordinate care for patients as part of the ACO model. Providers' shared savings will be based on quality measures such as patient outcomes and care coordination. The Advance Payment model will provide start-up practice support for physician-owned and rural practices to build their infrastructure. These payments would then be deducted from future shared savings from the accompanying initiative. Together, the Medicare Shared Savings Program and the Advance Payment model promote the formation of ACOs and the coordination of more efficient health care for patients.