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(ACO) regulations - American Society of Anesthesiologists

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CMS-1345-P 364<br />

practices is the increased probability <strong>of</strong> having or acquiring EHR systems, which was essential in<br />

participants' ability to gather data and track progress in meeting quality-<strong>of</strong>-care targets. For<br />

example, 8 <strong>of</strong> the 10 participating physician groups had an EHR in place before the<br />

demonstration began, and the 2 other participants, out <strong>of</strong> necessity, developed alternative<br />

methods for gathering patient data electronically. Lastly, GAO claims that the third size-related<br />

advantage that most <strong>of</strong> the 10 participating physician groups had over smaller physician practices<br />

was the larger groups' experience with other pay-for-performance systems prior to participating<br />

in the PGP Demonstration. That is, 8 <strong>of</strong> the 10 participants had previous experience with payfor-performance<br />

programs initiated by private or public sector organizations. This experience,<br />

GAO concludes, may have eased their adjustment to the PGP Demonstration and allowed them<br />

greater initial and overall success.<br />

We use this analysis not to predict cost investment and operating expenditures, but to<br />

demonstrate that we expect the range <strong>of</strong> investment to vary greatly across <strong>ACO</strong>s and to provide<br />

potential scope for aspiring participants. We expect that due to the difference in program<br />

requirements between the Shared Savings Program and the PGP Demonstration Project, and the<br />

potential variation in <strong>ACO</strong> size and structure, the PGP related costs may be a subset <strong>of</strong> the<br />

investment required by entities seeking participation in this program. However, we recognize<br />

that potential advantageous key drivers for participating physician groups would include<br />

institutional affiliations that allow greater access to financial capital, access to and experience<br />

using EHR and other IT systems and experience with pay-for-performance programs. As a<br />

result, we present a rough estimate <strong>of</strong> $1,755,251, based on the GAO findings to reflect the total<br />

average start-up investment and first year operating expenditures for a participant in the Shared<br />

Savings Program. Lastly, assuming a range <strong>of</strong> expected <strong>ACO</strong>s participating in the Shared

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