Why Has ACO Growth Slowed? 3 Reasons

After CMS announced 106 new Medicare accountable care organizations in January, only 35 new commercial ACOs have been announced, according to a Health Affairs blog written by David Muhlestein from Leavitt Partners.

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This represents a slowdown in ACO growth after the model exploded from a few dozen ACOs at the end of 2010 to roughly 500 after September 2013.

Mr. Muhlestein called the slowdown “surprising,” but offered the following three reasons as to why fewer ACOs have formed this year.

1. Lack of trailblazers. Most of the “trailblazing” hospitals, health systems and physician groups — those ready and willing to pursue risk-based accountable care contracts — have already done so.

To read the rest of the article, visit Becker’s Hospital Review.

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