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Launch Of Pioneer ACOs Marks First Step Away From Fee-For-Service Payment

The transition begins: Thirty-two health provider groups have begun operating under a new Medicare payment system, with many more to follow. The move away from traditional fee-for-service payment has big implications for the way medical device firms do business.

The U.S. health care delivery system moved a step away from the fee-for-service payment model on Jan. 1, 2012, when 32 provider groups began operating within Medicare’s "pioneer" accountable care organization program.

Announcing the 32 participants Dec. 19, HHS Secretary Kathleen Sebelius said the pioneer ACOs could save the Medicare Trust Fund up to $1.1 billion over the next five years

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