Physician-led Accountable Care Organizations (ACOs) generated stronger savings and improved patient outcomes in 2024, according to new results from the Centers for Medicare & Medicaid Services (CMS).

CMS reported that lower-revenue ACOs, typically physician-led practices and clinics, achieved net savings of $316 per capita, nearly double the $175 saved by higher-revenue, hospital-led ACOs. Organizations with a higher share of primary care clinicians fared even better, saving $401 per capita compared to $219 for other groups.

Quality performance also improved across the board. Nearly all ACOs met CMS’s reporting requirements, with greater adoption of electronic quality measures. Patient outcomes showed measurable gains: rates of controlled high blood pressure increased from 77.80% to 79.49%, poor hemoglobin A1c control dropped from 9.84% to 9.44%, and depression screening with a follow-up plan improved from 43.70% to 55.36%.

ACOs also outperformed comparable physician groups on key quality measures. For example, 53.53% of ACO patients received depression screenings with follow-up, compared to 44.42% for other physician groups. ACOs that earned shared savings demonstrated lower use of costly services, with reductions in hospital discharges, emergency department visits, and skilled nursing facility stays. Only 16 ACOs recorded shared losses, totaling $20.3 million.

“These results show the power of physician-led care models to deliver savings while improving health outcomes,” CMS said in the report.

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