HHS approves 106 new 'accountable care' groups under health law

A new program to improve the coordination of healthcare services got a big boost Thursday as the federal Medicare agency approved 106 new Accountable Care Organizations (ACOs).

ACOs were created under President Obama's healthcare law with the goal of improving quality and lowering costs. As many as 4 million seniors now have access to care through ACOs, the Health and Human Services Department said Thursday.

“Accountable Care Organizations save money for Medicare and deliver higher-quality care to people with Medicare,” Health and Human Services Secretary Kathleen Sebelius said as she announced the new approvals. “Thanks to the Affordable Care Act, more doctors and hospitals are working together to give people with Medicare the high-quality care they expect and deserve.”

ACOs are designed to bring together hospitals, doctors and other medical providers to coordinate the full spectrum of care for each patient. The idea is to shift Medicare payments toward quality and outcomes, rather than paying for each procedure. 

ACOs receive a percentage of the savings they bring to Medicare as an incentive to accept the new payment structure.

Roughly half of the ACOs approved so far are centered around physicians, HHS said in a statement.

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