NEW YORK--(BUSINESS WIRE)--Despite well-publicized departures from Medicare’s Pioneer ACO Program, the number of accountable care organizations (ACOs) continued to rise in the past year, though at a slower pace than in 2013. Almost 70 percent of the U.S. population now lives in localities served by accountable care organizations, and 44 percent live in areas served by two or more.
The figures come from new research by the consulting firm Oliver Wyman, based on the Department of Health and Human Services’ announcement of the latest class of ACOs approved to participate in Medicare’s ACO programs. The latest round of approvals in January brings the total of Medicare ACOs to 426, up from 368 in January 2014 and 134 in 2013. Oliver Wyman has identified an additional 159 ACOs, bringing the estimated total to 585, an increase of 12 percent from the previous year.
Key findings:
- About 5.6 million Medicare beneficiaries, or about 11 percent of total Medicare beneficiaries, now receive their healthcare from ACOs participating in Medicare’s ACO programs.
- These organizations also provide care to 35 million non-Medicare patients, about 6 percent more than last year.
- ACOs collectively serve between 49 and 59 million U.S. residents, or between 15 and 17 percent of the population.
“ The slowdown we’re seeing in the growth of ACOs was almost inevitable, given the pace of change of the past two years,” says Niyum Gandhi, a partner in Oliver Wyman’s Health & Life Sciences practice and one of the firm’s experts on ACOs. “The next big spurt will be more in effectiveness and sophistication than it will be in growth in numbers of ACOs." Gandhi also cites that the changes to the rules that CMS proposed this past winter, especially the Next Generation ACO model, could give ACOs the boost they need to compete more aggressively.
The full report is available here.
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With offices in 50+ cities across 26 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm's 3,700 professionals help clients optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan Companies [NYSE:MMC]. For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.
For the latest on the new world of healthcare, visit the Oliver Wyman blog, Transforming Healthcare, at blogs.oliverwyman.com/healthcare/.
