ACO Final Rule: The Opportunity Cost

Law360, New York (November 2, 2011, 1:31 PM EDT) -- There was much immediate rejoicing regarding the decision by the Centers for Medicare and Medicaid Services not to require Track 1 participants in the Medicare Shared Savings Program (MSSP) to bear “downside” risk in the third year of their contracts. However, the reaction misses the nature of the risk that participating providers will continue to take in choosing either track of the MSSP over other strategic choices.

The risk that providers will be assuming under MSSP is the risk that they will not realize an appropriate...
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