Premier Inc. (Charlotte, NC) recently issued a statement to CMS to recommend that, in light of its success, the Next Generation Accountable Care Organization (NGACO) program be extended or adapted. The NGACO model requires participants to take the greatest level of financial risk of any ACO model, Premier said. And yet, the organization recently announced that NGACOs reduced Medicare spending by $242 million in in 2018, achieving nearly $221 million in net shared savings. NGACOs that are organized in Premier’s data-driven collaborative realized nearly 30% of these savings, reducing total spending by more than $70 million and earning in excess of $63 million in shared savings. The NGACO model is scheduled to sunset at the end of this year. Premier has called on CMS to build on these successes by either extending the NGACO program or better adapting the new Direct Contracting Model to provide a stepwise progression between models for NGACOs.
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