Medicare Shared Savings Program (MSSP)

The Medicare Shared Savings Program is a plan that allows independent physicians and hospitals the ability to create an Accountable Care Organization and try to save Medicare money through the use of improved care plans and better patient management. In return for cutting down on Medicare costs, the ACO will receive a percentage of the generated savings. This opportunity allows ACOs to get extra revenue from doing their jobs better.

On the downside, if an ACO does not decrease Medicare’s costs, but instead increase it, that ACO will have to pay for the extra incurred costs. This may not seem like much, but if costs are slightly increased for all the Medicare patients in the ACO, the payment will add up fast. With this model, Medicare is shifting their priorities away from “physicians doing the bare minimum” to “making sure that patients get the best care possible, and keeping them healthy and out of the hospital.”

[MSSP] is an alternative payment model that:

  • Promotes accountability for a patient population.
  • Coordinates items and services for Medicare FFS beneficiaries.
  • Encourages investment in high quality and efficient services.
- Center for Medicare and Medicaid Services

For more information on MSSP, please refer to these sources: