Who We Are

The New Jersey Life Sciences Vendors Alliance (NJLSVA) is a coalition of businesses, individuals and academia who provide goods and services to New Jersey’s life sciences companies.

The NJLSVA was founded to educate suppliers on trends in industry procurement and public policy that affects the life sciences industry.

HHS Report: Medicare Shared-Savings ACOs Cut $1 Billion in Costs Over Three Years

Washington, DC, September 5, 2017 — Shelby Livingstone reports in Modern Healthcare that accountable care organizations (ACO) participating in the CMS’ Medicare shared-savings program reduced spending by about $1 billion in three years, the Department of Health and Human Services’ (HHS) Office of Inspector General reported Tuesday.

Most of the 428 ACOs in the first three years of the shared-savings program reduced Medicare spending compared to their benchmarks, and a small group of those ACOs produced “substantial” savings.

The majority of the ACOs—82%—also improved the quality of care they provided, based on data from the CMS on 33 individual quality measures. They outperformed fee-for-service providers in 81% of the quality measures.

“While policy changes may be warranted, ACOs show promise in reducing spending and improving quality,” the OIG report concluded.

The report shows that the initiative launched under the Affordable Care Act to cut spending, improve care quality and pay doctors based on value rather than volume is working.

The findings come just weeks after the Trump administration canceled other alternative payment model experiments, including two mandatory bundled-payment programs, and rolled back another.

The report adds to the growing body of evidence showing that while ACO performance varies widely, ACOs are improving the quality of care overall, said David Muhlestein, chief research officer at Leavitt Partners.

Cost savings—the bulk of which are concentrated among just a few ACOs—have trailed improvements in quality, he said, but there’s promise for both.

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