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Promising Payment Reform: Risk-Sharing with Accountable Care Organizations

The new Medicare Shared Savings Program is designed to accelerate the creation of accountable care organizations (ACOs), payer–provider alliances for delivering high-quality health care at lower cost through new payment models that reward efficiency. A Commonwealth Fund study reports on the implementation of eight private ACOs that use, or are planning to deploy, a shared payer–provider risk payment model. Still in an early developmental phase, these payment models vary in their design and in how they define shared risk.

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