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(ACO) regulations - American Society of Anesthesiologists

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CMS-1345-P 289<br />

expect to consider incorporating additional payment models into the Shared Savings<br />

Program through future rule making.<br />

2. Two Tracks Provide Incremental Approach to Incorporating Risk<br />

We considered several options about how to incorporate a two-sided model into<br />

the Shared Savings Program. The major options we considered are as follows:<br />

• Basing the program on a two-sided model, thereby requiring all participants to<br />

accept risk from the first program year.<br />

• Allowing applicants to choose between program tracks, either a one-sided<br />

model or two-sided model, for the duration <strong>of</strong> the agreement.<br />

• Allowing a choice <strong>of</strong> tracks, but requiring <strong>ACO</strong>s electing the one-sided model<br />

to transition to the two-sided model during their initial agreement period.<br />

Requiring all <strong>ACO</strong>s to initially take downside risk would likely inhibit the<br />

participation <strong>of</strong> some interested entities. Potential Shared Savings Program applicants<br />

will likely include providers and suppliers with different levels <strong>of</strong> experience with riskbased<br />

payment arrangements and with different levels <strong>of</strong> financial footing, reflecting the<br />

heterogeneity <strong>of</strong> providers and suppliers and provider arrangements that exist in the<br />

nation's health care system. The comments on the November 17, 2010 RFI reflect this<br />

diversity, but in sum, favored our adoption <strong>of</strong> a flexible approach that recognizes the<br />

different levels <strong>of</strong> <strong>ACO</strong>s' readiness to take on risk. For instance, organizations<br />

experienced with integrated care and risk-based arrangements, with available financial<br />

reserves, may be ready and willing to accept risk beginning in the first program year.<br />

Others urged against program requirements which could preclude small/solo practices<br />

and safety net providers, from entering the Shared Savings Program. These comments

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