3 Next Generation ACOs head for the door

Out of the original 21 participants in CMS' Next Generation Accountable Care Organization Model, 18 remain after roughly seven months in the program, Healthcare Finance reported.

Harrisburg, Pa.-based River Health ACO and Raleigh, N.C.-based WakeMed Key Community Care will no longer participate in the model. River Health pulled out in February, almost immediately after the ACO began, as it could not meet required cost targets. WakeMed decided to withdraw for 2016 following a financial and operational metrics evaluation, Healthcare Finance reported. WakeMed said it is looking at Medicare ACO options for 2017.

Northridge, Calif.-based Heritage California ACO will also depart this year but will fully participate in 2017.

CMS launched Next Gen this year and selected ACOs with accountable care experience in initiatives like the Medicare Shared Savings Program and the Pioneer ACO program. Next Gen is built off the Pioneer ACO model, which offered higher levels of financial risk and reward in an effort to shift free-for-service Medicare payments to alternative models.

CMS will announce Next Gen's 2017 participants in August.

Remaining providers include:

  • Accountable Care Coalition of Southeast Texas (Houston)
  • Baroma Accountable Care (Miami)
  • Beacon Health (Brewer, Maine)
  • Bellin Health Physician Partners (Green Bay, Wis.)
  • Cornerstone Health Enablement Strategic Solutions (High Point, N.C.)
  • Deaconess Care Integration (Evansville, Ind.)
  • Henry Ford Physician ACO (Detroit)
  • Iowa Health Accountable Care (West Des Moines)
  • MemorialCare Regional ACO (Fountain Valley, Calif.)
  • Optum ACO (Phoenix)
  • OSF Healthcare System (Peoria, Ill.)
  • Park Nicollet Health Services(St. Louis Park, Minn.)
  • PioneerValley Accountable Care (Springfield, Mass.)
  • Prospect ACO CA (Los Angeles)
  • Steward Integrated Care Network (Boston)
  • ThedaCare ACO (Appleton, Wis.)
  • Triad HealthCare Network (Greensboro, N.C.)
  • Trinity Health ACO (Livonia, Mich.)

Editor's Note: This article was updated July 20 at 2:00 pm CT. It incorrectly stated Heritage California was leaving the Next Generation Program due to financial issues. Heritage California has not said it could not meet financial targets. We regret this error. 

More articles about ACOs:
HHS' Sylvia Burwell: This Iowa town should be the role model for U.S. healthcare
Aetna, Gateway Health in Virginia strike ACO agreement
OneCare Vermont selected by state to be Medicaid ACO

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