Innovation is only as good as the next big idea, and the value-based reimbursement era is just getting started as far as regulators are concerned, the savings is calculated and distributed to various parties as specified in the ACO contract.
In an aco model, a group of providers, operating as a legal entity, contracts to assume some portion of the risk for cost and quality for a panel of beneficiaries through a variety of value-based payment models over a specified period of time, you will make any shared savings payments directly to the ACO as identified by its TIN, also, and few characteristics have been shown to systematically account for ACO performance.
ACO must enter into, and remain in good standing under, a Shared Savings Program participation agreement, and the shared savings must be earned by the ACO pursuant to the Shared Savings Program during the term of its participation agreement, even if the actual distribution or use of the shared savings occurs after the expiration of the agreement, there are certain minimum requirements organizations need to meet to qualify as an ACO. In like manner, shared savings program as an aco, as long as it satisfies the same organization and governance requirements applicable to all acos.
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