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June 20, 2011 News Headlines

HANYS Supports ACO Advance Payment Initiative

HANYS submitted comments Friday to the federal Innovation Center on its proposed Advance Payment Initiative for Accountable Care Organizations (ACOs) entering the Medicare Shared Savings Program (SSP).  Under the proposal, eligible ACOs participating in the SSP could receive monthly payments as an advance on the shared savings they are expected to earn by meeting quality thresholds and performance standards while reducing costs relative to an expenditure benchmark.

HANYS expressed support for the proposed Advance Payment Initiative, noting that many of New York’s non-profit hospitals and health systems are interested in forming ACOs and participating in the SSP but simply do not have the access to capital necessary to finance their participation.  As such, HANYS commended the Innovation Center and asked that the rules governing the use of advance payment funds be made as flexible as possible given the sizable investment and operating costs for ACOs participating in the SSP.

HANYS previously noted in its June 6 comment letter that advance payments must be made available to encourage ACOs to participate in the SSP.
Contact: Jeffrey Gold