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Published on November 01, 2021

Area ACO saves Medicare $12.5 Million

Triad HealthCare Network generated the savings through the Next Generation ACO program.


Triad HealthCare Network (THN) will receive a $12.5 million payment for its work in the Centers for Medicare and Medicaid Services’ Next Generation Accountable Care Organization model. THN will reinvest part of the savings for continuous quality improvements and will use a portion of the savings as performance incentives for physicians and others who partner with them.  The program encourages accountable care organizations (ACO) to lower health care costs while improving quality and outcomes for patients through innovative programs. 

ACOs are health care organizations that provide resources to and foster greater collaboration among health care providers resulting in a team approach to caring for patients. “These results are a testament to the teamwork of health care providers who have joined THN,” says Steve Neorr, chief administrative officer, Triad HealthCare Network. “Through sharing information and being willing to innovate, our patients get better care at lower costs. THN is leading the way to better health care.”

The Next Generation ACO model sets an annual budget for ACOs to care for a large group of Medicare patients. In order to be eligible for any possible payment, ACOs must submit quality measurements across multiple areas including patient satisfaction, disease management, care coordination and preventative care. If the ACO provides high-quality care for less than the government budgeted, the ACO shares the savings. If the care costs more, the ACO must pay the difference. CMS has issued quality and financial performance results showing that ACOs have improved patient care and produced hundreds of millions of dollars in savings. 

THN is one of only 45 ACOs in the country selected by Medicare to participate in the Next Generation ACO model. There are many ACOs in other CMS programs and models. However, the Next Generation model is considered among the most progressive ACO models in terms of the amount of risk providers assume to participate.