Shared Savings Success
Top 5 Traits of High-Performing ACOs—
and 5 Common Pitfalls to Avoid
The recent CMS results for the Medicare Shared Savings Program (MSSP) showed record-breaking savings—over $2.1 billion in 2023. Yet, not all ACOs achieved these gains. So, what separates the high performers from those that struggle to meet savings goals? The answer lies in strategic focus, effective coordination, and the intelligent use of data. This blog delves into the top characteristics of successful ACOs and explores the common mistakes that hinder shared savings.
5 Key Characteristics of ACOs That Excel in Shared Savings
- Strong Primary Care Foundation
At the heart of successful ACOs is a robust primary care base. Primary care clinicians are more than just gatekeepers; they’re the front line in preventive care and chronic disease management. These ACOs know that effective primary care isn’t about pushing for more visits; it’s about smarter care—tackling issues before they escalate. High-performing ACOs focus on primary care investments, supporting clinicians with resources that allow for proactive management of patient health. The result? Fewer ER visits, fewer readmissions, and more stable patients. - Efficient Use of Resources
Resource management in high-performing ACOs isn’t just about cutting costs—it’s about making sure every dollar spent contributes to better outcomes. These ACOs prioritize chronic care programs and preventive screenings, addressing high-risk patients early. They invest strategically in areas that make a real impact on patient health, such as diabetes management, cancer screenings, and heart disease prevention. Rather than spreading resources thin, successful ACOs zero in on high-impact interventions that drive long-term cost savings. - Data-Driven Decision-Making
High-performing ACOs understand that data is their best ally in value-based care. They use data not just to monitor outcomes, but to predict future needs and optimize patient care in real time. From identifying trends in patient health to tracking quality metrics, these ACOs leverage data to inform every decision. It’s not just about having data; it’s about having actionable insights. They use predictive analytics to spot potential issues early, enabling timely interventions that improve outcomes and cut costs. - High-Level Coordination and Communication
In the most successful ACOs, coordination isn’t just a buzzword; it’s embedded in every interaction. These ACOs foster a culture where information flows seamlessly between primary care providers, specialists, and care coordinators. They rely on integrated technology platforms that ensure every member of a patient’s care team is on the same page. This high level of coordination reduces redundancies, prevents costly missteps, and ensures that patients receive the right care at the right time. Simply put, these ACOs know that well-coordinated care is high-quality care. - Commitment to Continuous Improvement
Top-performing ACOs don’t rest on their laurels. They continually assess their processes, learning from what works and what doesn’t. They have systems in place to review outcomes and quickly implement changes based on real-world results. By fostering a culture of improvement, these ACOs can adapt to evolving needs, keeping pace with the complexities of patient care. Continuous improvement isn’t just a goal; it’s a mindset that drives sustainable success in value-based care.
5 Common Mistakes ACOs Make That Limit Shared Savings
- Neglecting Primary Care Engagement
ACOs that overlook primary care as the cornerstone of their strategy often see disappointing results. Without a strong primary care focus, it’s easy for high-cost issues to slip through the cracks. The result? More ER visits, higher readmission rates, and increased costs. Neglecting primary care doesn’t just impact savings; it impacts patient health. A solid primary care strategy isn’t optional—it’s essential. - Underutilizing Data and Technology
Data without action is just noise. ACOs that don’t fully leverage data and technology miss critical insights into patient needs, care gaps, and cost drivers. Lacking the infrastructure to analyze and act on data leaves these ACOs blind to emerging trends and unable to make proactive care decisions. Technology investments can be daunting, but without them, ACOs risk falling behind in a data-driven healthcare environment. - Lack of Investment in Talent and Resources
Running an ACO requires a highly skilled team that understands value-based care, quality reporting, and patient engagement. ACOs that skimp on talent or fail to equip their teams with the necessary resources often struggle to meet their performance goals. Building a capable team—and giving them the right tools—can make the difference between hitting savings targets and missing them entirely. - Inconsistent Coordination Across Teams
Poor coordination can derail an ACO’s efforts faster than almost any other factor. In ACOs where communication is fragmented, care becomes fragmented, too. This inconsistency leads to duplicated services, missed follow-ups, and preventable hospitalizations. Successful ACOs make coordinated care a priority, knowing that smooth collaboration among care teams is essential for delivering patient-centered, cost-effective care. - Overlooking Patient Engagement
Patients are key players in their own health outcomes, yet some ACOs fail to prioritize patient engagement. When patients aren’t engaged in their treatment plans, adherence suffers, and outcomes worsen. High-performing ACOs take a proactive approach, empowering patients with education and resources that make it easier to follow their care plans. Without engaged patients, even the best care strategies fall short.
Conclusion: Setting ACOs Up for Success with the Right Support
In value-based care, success is rarely accidental. ACOs that excel do so by building on primary care, using data intelligently, coordinating seamlessly, and continuously improving. Conversely, those that miss their savings goals often share common pitfalls—many of which are avoidable with the right strategies and support.
At AaNeel, we help ACOs optimize performance by offering data-driven insights, streamlined reporting solutions, and tools for enhanced patient engagement. Our technology and expertise equip ACOs to not only avoid common mistakes but to thrive in the competitive world of value-based care.