The Centers for Medicare & Medicaid Services (CMS) on Tuesday named the 27 new accountable care organizations (ACOs) that will take part in the Medicare Shared Savings Program. The American Medical Association is pleased the majority of them are physician-led.

According to CMS, the selected ACOs include more than 10,000 physicians, 10 hospitals and 13 smaller physician-driven organizations in both urban and rural areas.

[See also: ACO program is asking too much, says expert.]

“We are extremely pleased that a majority of the 27 newest Medicare Accountable Care Organizations (ACOs) announced today by CMS will be physician-led and five of the new groups will participate in the advanced payment model,” the AMA announced on Tuesday. “The AMA strongly advocated for these two options, and today’s CMS announcement shows that allowing all interested physicians to lead and participate in this new model increases the number of groups forming Medicare ACOs.”

AMA officials said physician practices are benefiting from the financial assistance offered by the advanced payment initiative, which was created as a direct result of the AMA’s recommendation to CMS.

The upfront payments offered through this program help with the cost of starting an ACO, which is especially beneficial for small physician practices, they added.

CMS’ announcement “shows that many of the first ACOs will be lead by physicians and build on existing physician-patient relationships,” AMA officials said. “This is critical to successfully improve the quality of patient care while reducing costs. While not all physicians will choose to be part of an ACO, allowing all who are interested to participate in this new model helps its prospects for long-term success.”

The Medicare Shared Savings Program, mandated by the Affordable Care Act, is meant to allow participating ACOs to share with the federal government in the savings achieved by providing more efficient care. Participation in the federal ACO program is voluntary for providers and beneficiaries.

The first 27 Shared Savings Program ACOs will serve an estimated 375,000 beneficiaries in 18 States, according to CMS Acting Administrator Marilyn Tavenner.

This brings the total number of organizations participating in the ACO program to 65, including the 32 Pioneer Model ACOs that were announced last December, and six Physician Group Practice Transition Demonstration organizations that started in January 2011. 

[See also: ACOs and meaningful use to go hand in hand.]

The list of new ACOs in the Shared Saving Program include:

• Accountable Care Coalition of Caldwell County, LLC Lenoir, N.C.

• Accountable Care Coalition of Coastal Georgia Ormond, Fla. (Serving beneficiaries in Ga. and S.C.)

• Accountable Care Coalition of Eastern North Carolina, LLC New Bern, N.C.

• Accountable Care Coalition of Greater Athens Georgia Athens, Ga.

• Accountable Care Coalition of Mount Kisco, LLC Mount Kisco, N.Y.

• Accountable Care Coalition of the Mississippi Gulf Coast, LLC Clearwater, Fla. (Serving beneficiaries in the Mississippi Gulf Coast area)

• Accountable Care Coalition of the North Country, LLC Canton, N.Y.

• Accountable Care Coalition of Southeast Wisconsin, LLC Milwaukee, Wis.

• Accountable Care Coalition of Texas, Inc. Houston, Texas

• AHS ACO, LLC Morristown, NJ (Serving beneficiaries in N.J. and Pa.)

• AppleCare Medical ACO, LLC Buena Park, Calif.                      

• Arizona Connected Care, LLC Tucson, Ariz.

• Chinese Community Accountable Care Organization New York, N.Y.

• CIPA Western New York IPA, doing business as Catholic Medical Partners Buffalo, N.Y.

• Coastal Carolina Quality Care, Inc. New Bern, N.C.

• Crystal Run Healthcare ACO, LLC Middletown, N.Y. (Serving beneficiaries in N.Y. and Pa.)

• Florida Physicians Trust, LLC Winter Park, Fla.

• Hackensack Physician-Hospital Alliance ACO, LLC Hackensack, N.J. (Serving beneficiaries in N.J. and N.Y.)

• Jackson Purchase Medical Associates, PSC Paducah, Ky.

• Jordan Community ACO Plymouth, Mass.

• North Country ACO Littleton, NH (Serving beneficiaries in N.H. and Vt.)

• Optimus Healthcare Partners, LLC Summit, N.J.

• Physicians of Cape Cod ACO Description of Organization Hyannis, Mass.

• Premier ACO Physician Network Lakewood, Calif.

• Primary Partners, LLC Clermont, Fla.

• RGV ACO Health Providers, LLC Donna, Texas

• West Florida ACO, LLC Trinity, Fla.

Follow Diana Manos on Twitter @DManos_IT_News.