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Data Analytics Support $62M in Next Generation ACO Savings

August 31, 2018 / Jessica Kent

Data analytics and other health IT tools played an integral role in helping Next Generation Accountable Care Organization (NGACO) Model generate net savings of approximately $62 million for the Medicare program, states a new report from CMS. Launched in January 2016, the NGACO Model involves the highest levels of financial risk out of any CMS ACO initiative. Unlike other ACOs, NGACOs have almost complete financial responsibility for outcomes, must take on downside risk, and have no minimum savings or loss requirements. The high financial stakes required significant investment in data analytics tools to help identify opportunities to improve quality and reduce unnecessary spending. NGACOs employed staff to fill health IT and data analytics roles, and leaders stressed the importance of developing health IT and data analytics capabilities to support the model.