A new study analyzing five markets around the country found that ACOs were providing care to more than half the Medicare patients in the traditional fee-for-service program. The study also found that ACOs are found more in markets with higher consolidation rates by hospitals and doctors.
In one out of five markets, 5% to 20% of Medicare fee-for-service enrollees were included in the ACOs; the rest of markets had less than 5% of Medicare fee-for-service enrollees in ACOs. Researchers also discovered that there were more Medicare ACOs in markets where more hospitals operated within a hospital system, citing provider integration as being a key marker of where ACOs are forming. In addition, Medicare spending did not seem to have an impact on ACO formation and penetration.
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