Financial Results Reveal Why ACOs Left Pioneer Program

CMS released financial results from the first 2 years of the Pioneer ACO program. The program is down to 19 accountable care organizations (ACOs) from the original 32 that started the program, and the financial results reveal why those that dropped out did so.

Franciscan Alliance, which left the program in September, reported 6% gross savings in year 1 and shared in $6.67 million in shared savings. However, the ACO left the Pioneer program because it did not get to share in any savings in the second year and anticipated no bonus in the third, according to Modern Healthcare.

Sharp Healthcare dropped out after 2 consecutive years of financial losses. In the first year the ACO reported losses of just —0.3%, and in year 2 of –1.3%. Overall, Sharp reported losses totaling more than $5 million over the 2 years in the Pioneer program.

The first year’s financial results include all 32 ACOs that participated at the beginning of the program. By the second year, 9 ACOs had dropped out, and all but one of which had reported losses during the first year.

University of Michigan is the only ACO that chose not to continue participating despite savings of more than half a million dollars during that first year.

The 13 ACOs that have left the program include: Franciscan Alliance; Genesys PHO; Healthcare Partners of California; Healthcare Partners of Nevada; JSA Medical Group, a division of HealthCare Partners; Physician Health Partners; Plus! / North Texas ACO; Presbyterian Healthcare Services; PrimeCare Medical Network; Renaissance Health Network; Seton Accountable Care Organization, Inc.; Sharp HealthCare ACO; and University of Michigan.