The Centers for Medicare and Medicaid Services (CMS) announced Wednesday that it will extend the deadline for accountable care organizations wanting to apply to be Pioneer ACO models. Officials said they are looking for advanced programs to lead the way for ACO development nationwide.

The new CMS Innovation Center, responsible for the project, will now take letters of intent until June 30 from ACOs that wish to participate. The deadline has been extended from June 10. Complete applications must be postmarked no later than Aug. 19, a month later than the original July 18 deadline, CMS said.

According CMS officials, the Pioneer ACO model is estimated to save Medicare as much as $430 million over three years by better managing care for beneficiaries and eliminating duplication. And it is designed to work in coordination with private payers to improve quality of care and and lower costs.

ACOs have been in the spotlight this week, with the comment period ending Monday on CMS' proposed ACO rule, introduced March 31. ACOs are part of the the payment innovations established under the Affordable Care Act. Providers who join together to form ACOs to improve the population health in their region will receive part of the savings through the Shared Savings Program. Pioneer ACOs will receive higher shared savings rates than start-up ACOs, and CMS will publicly report on the Pioneer ACO outcomes.

Consumers voiced their support for ACOs this week. The Campaign for Better Care said ACOs will help to transform the American healthcare system through patient-centered care, patient engagement, a strong foundation of primary care, performance measurement including patient experience and meaningful stakeholder involvement.

[See also: Consumer group supports ACO proposed rule.]

However, providers have some doubts. In May, the American Hospital Association (AHA) released a study that found the cost of start-up and an initial year of management for an ACO will run between $11.6 to $26.1 million – much higher than the $1.8 million estimated by CMS.

“CMS’ estimate falls short of the mark,” said Rich Umbdenstock, president and CEO of the AHA. “The shared savings rate with ACOs should be adjusted to reflect these costs in order to encourage and enable participation in this important program.”

Some groups have expressed concerns that ACOs will create incentives for physicians and hospitals to provide less care, in order to earn bonuses. Supporters of ACOs say efficient care is based on best practices and always leads to better outcomes and lower costs.

[See also: AHA says start-up costs for ACOs higher than expected.]

Find out more on the ACO pioneer pilot application process on the CMS website.
 

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