Health care pilot shows progress in controlling costs

Massachusetts health care providers experimenting with a new business model for Medicare patients said they saved millions of dollars last year while improving care.

These providers have set up patient pools called pioneer accountable care organizations, where they earn incentives for coordinating care, cutting unnecessary tests and procedures, and keeping patients healthy.

If providers exceed a certain budget, they pay a penalty.

If they come in below budget, they split the savings with Medicare, the government health insurance program for senior citizens.

At Steward Health Care, the accountable care organization saved $19.2 million, while the group at Beth Israel Deaconess Medical Center saved $17.3 million, which they said were among the best results in the country. Mount Auburn Hospital saved $3.6 million, and Partners HealthCare saved $3.3 million.

The doctors network Atrius Health saved about $3 million, a turnaround from last year, when it was the only provider in Massachusetts to post a loss.

The savings in Massachusetts were accompanied by higher marks in quality of care.

“It’s one thing to deliver savings,” said Dr. Sanjay Shetty, president of Steward’s doctors group. “It’s another thing to deliver savings while improving your quality scores.”

Partners’ savings last year lagged its performance in 2012, when the system saved $14.4 million. Dr. Gregg Meyer, chief clinical officer, said it will take a few more years to know how well the program is working.

“It takes a while for our [health management] programs to really have their full effect,” he said.

Accountable care organizations were established under the federal Affordable Care Act, also known as Obamacare, to push health care providers to focus on controlling costs while improving quality

Massachusetts, often considered a national leader in health care, has a disproportionate share of these organizations. with five of the 23 nationwide. Each program includes tens of thousands of patients.

Not all the accountable care organizations have progressed as well as the ones in Massachusetts. Many have lost money, and 10 have dropped out of the pilot program since last year.

The federal Centers for Medicare & Medicaid Services has refused to publicly disclose the performance of individual care organizations, even while issuing a press release Tuesday calling the initiative a success.

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Correction: Due to a reporting error, an earlier version incorrectly stated that Atrius Health had to pay a penalty last year for its performance. Atrius did not pay a penalty.