Medicare Shared Savings Program is committed to achieving better health for individuals, better population health, and lowering growth in expenditures. The Shared Savings Program offers providers and suppliers (e.g., physicians, hospitals, and others involved in patient care) an opportunity to create an Accountable Care Organization (ACO). An ACO agrees to be held accountable for the quality, cost, and experience of care of an assigned Medicare fee-for-service (FFS) beneficiary population. The Shared Savings Program has different tracks that allow ACOs to select an arrangement that makes the most sense for their organization.

The Shared Savings Program is an important innovation for moving CMS’ payment system away from volume and toward value and outcomes. It is an alternative payment model that:

1. Promotes accountability for a patient population.
2. Coordinates items and services for Medicare FFS beneficiaries.
3. Encourages investment in high quality and efficient services.