CMS announces Advance Payment Model

The Centers for Medicare and Medicaid Services has announced an Advance Payment Model to promote rural and physician-owned participation in Accountable Care Organizations, according to a press release. 

The press release states that The Advance Payment model will provide start-up resources for rural and physician-owned practices in order to build the necessary ACO infrastructure, which may include new staff or information technology systems.   

The option is opened to ACOs that do not include any inpatient facilities and have less than $50 million in total annual revenue, and to ACOs in which the only inpatient facilities are critical access hospitals and/or Medicare low-volume rural hospitals and have less than $80 million in total annual revenue, according to the CMS website.

The advanced payments would be recovered from any future shared savings earned.

(Sources: AHA News Now,, October 20, 2011; Centers for Medicaid and Medicare Services,, October 20, 2011)