Health officials announce new 'Accountable Care' groups

By Elise Viebeck - 07/09/12 11:57 AM ET

Federal health officials announced the creation of 89 new Accountable Care Organizations (ACOs) to serve Medicare patients.

The ACOs are helping to coordinate care for 1.2 million Medicare beneficiaries in 40 states and Washington, D.C., according to the Health and Human Services (HHS) Department.

"Better coordinated care is good for patients and it saves money," HHS Secretary Kathleen Sebelius said in a statement.

"We applaud every one of these doctors, hospitals, health centers and others for working together to ensure millions of people with Medicare get better, more patient-centered, coordinated care."

A total of 154 organizations participate in shared savings initiatives under Medicare, according to materials from HHS.

These groups serve 2.4 million of the program's beneficiaries, HHS stated.

The rise in ACOs represents a shift in the way medical providers are paid under Medicare. Rather than receiving reimbursements per procedure, providers in an ACO team receive a lump sum to deliver care for a group of patients.

The model is seen as a way to encourage more patient-centered care at lower costs.