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Ducker Worldwide In the News: Risks, Rewards Differ Among ACO Models

06.13.11

Crain's Detroit Business
By Jay Greene

Under Medicare's shared savings program, which begins in January, accountable-care organizations can choose between two financial risk models.

In the "one-sided risk model," which is considered the less risky model, ACOs share in any savings for the first two years of a three-year contract. However, during the third year, ACOs could lose money if the cost of patient care exceeds the Medicare average.

But in the "two-sided risk model," the ACO stands to either make money or lose money all three years.

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