ACO Money Ball - The numbers are in on the shared savings program and as I predicted, the program can only be characterized as a disappointment.

Here are the numbers.

1)      Kudos to Memorial Hermann for generating almost 10% of the shared savings for the program.

2)      Thirty of the ACOs generated 80% of the savings.

3)      Of the 203 ACOs reporting results, 150 (73%) received no shared savings payments (but incurred significant infrastructure costs).

4)      If one assumes infrastructure cost of $1.5-$3 million per ACO (which is conservative) the 203 ACOs reporting data spent in excess of $300-$600 million on infrastructure and received a collective shared savings payout in the range of $300 million.

Clearly, reality has caught up to the healthcare policy theorists – how long will they perpetuate this failed concept?

We all joked that 'ACO" stands for “Awesome Consulting Opportunity”— The Medicare Shared Savings Program may have been a windfall for consultants, but it does not appear that most of the providers received any material benefit.