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Medicare Shared Savings Program (MSSP)

The Medicare Shared Savings Program (MSSP) is an accountable care arrangement letting provider groups form ACOs that share in savings, and sometimes losses, when they meet quality benchmarks while reducing the cost of care for assigned Medicare beneficiaries.

What is the Medicare Shared Savings Program (MSSP)?

The Medicare Shared Savings Program (MSSP) is a value-based initiative that allows groups of physicians, hospitals, and other providers to organize as Accountable Care Organizations (ACOs) and take collective responsibility for the cost and quality of care delivered to a defined group of Medicare beneficiaries. If the ACO holds total spending below a benchmark while meeting quality standards, it shares in the resulting savings with Medicare.

Participation tracks vary in how much risk an ACO accepts. Some arrangements offer upside only, letting the group earn a portion of savings without penalty, while more advanced tracks add downside risk, meaning the ACO must repay a share of any spending that exceeds the benchmark.

Why does the MSSP matter for providers and surgery centers?

The MSSP is one of the largest accountable care arrangements in the country and a central mechanism for moving Medicare away from pure fee-for-service toward outcomes-based payment. It rewards coordination, preventive care, and avoidance of unnecessary utilization, which reshapes referral patterns and how organizations measure success.

For ambulatory surgery centers, ACOs participating in the MSSP are motivated to steer appropriate procedures toward lower-cost, high-quality settings, and the ASC's efficient cost structure can make it an attractive partner. Centers that can demonstrate strong outcomes and competitive pricing are well positioned as ACOs look to reduce the total cost of surgical care.

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