How many payers can participate in an ACO?
An ACO can function with only one payer, however the provider response to shared savings incentives will be enhanced by having a critical mass of payers participate in the program. Ideally, all the payers in the market (both public and private) will participate. A shared savings program that align incentives among multiple public and private payers will strengthen an ACO’s incentive to improve efficiency, make necessary investments in infrastructure and process improvement, reduce capacity that does not contribute to higher value, and reduce reporting burden on providers. A unified approach would also minimize incentives to shift utilization outside of the participating payer(s).
