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Hospital-led accountable care orgs increased Medicare spending, says CMS

A photo of two male doctors in blue scrubs talking in a clinical setting with monitors and wiring all around.
Photo: Jane Barlow-Pool/Getty Images

A new CMS evaluation shows hospital-led ACOs drove higher Medicare spending in 2023 while physician-led groups generated savings.

Medicare spending under the ACO REACH model increased by 0.8% in 2023, according to the latest annual evaluation by the Centers for Medicare & Medicaid Services (CMS). The rise occurred even as participating accountable care organizations (ACOs) reduced gross spending and improved quality performance. 

An ACO is a network of doctors,

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