ACO REACH Model Shows 4.1% Savings in Year Two: CMS Report

ACO REACH Performance Results

CMS has released year-two performance data for the ACO REACH model, and the results are encouraging for proponents of value-based care. Participating accountable care organizations achieved an aggregate 4.1% reduction in total cost of care, generating approximately $1.8 billion in net savings.

The savings were driven primarily by reductions in avoidable hospital admissions and emergency department utilization. ACOs that invested in care management infrastructure and social determinants of health interventions saw the strongest performance.

Quality Metrics Improve

Importantly, the cost savings did not come at the expense of quality. Most REACH ACOs improved on key quality measures including preventive screening rates, chronic disease management, and patient experience scores.

The model's emphasis on health equity also showed results, with participating ACOs demonstrating improvements in care quality for underserved populations, a key policy priority for CMS.

Implications for the Value-Based Care Transition

These results strengthen the case for CMS's broader push toward value-based payment models. Health systems that have been hesitant to take on financial risk may find the REACH model's performance data compelling evidence that well-designed value-based arrangements can deliver both savings and quality improvement.