New Jersey Medicaid Accountable Care Organization (ACO) Demonstration Project

Background

The New Jersey Medicaid Accountable Care Organization (ACO) Demonstration project, enacted in 2011 (NJ P.L. 2011, c.114), created a mechanism for provider coalitions to share in Medicaid savings they generate through care improvement initiatives in designated geographic areas with at least 5,000 beneficiaries. Regulations (46 NJR 5(1)) were finalized in May 2014 and the Demonstration began in July 2015 with three certified ACOs (Camden Coalition of Health Care Providers, Healthy Greater Newark ACO [now Greater Newark Health Care Coalition] and Trenton Health Team). 

In January 2020, New Jersey Governor Phil Murphy signed into law a bill designating these ACOs as “Regional Health Hubs” alongside the Health Coalition of Passaic County. Learn more about the health hubs here. 

The 2011 legislation called for the Center for State Health Policy to support the implementation and evaluation of the Demonstration. To fulfill this mandate, the Center conducted in-depth analyses and program evaluations drawing on stakeholder interviews in addition to Medicaid claims and encounter data and other data sources.

Related Publications

Articles & Presentations

• DeLia, D., & Yedidia, M. J. (2020). The Policy and Practice Legacy of the New Jersey Medicaid ACO Demonstration Project. Journal of Ambulatory Care Management, 43(1), 2–10.
• DeLia, D. (2017). Spending Carveouts Substantially Improve the Accuracy of Performance Measurement in Shared Savings Arrangements: Findings From Simulation Analysis of Medicaid ACOs. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 54.
• Cantor, J. "Achieving Better Care and Lower Costs in Health Care for Low-Income Populations." Public Health & Preventive Medicine Grand Rounds, Rutgers New Jersey Medical School, Newark, New Jersey, 2014.
• Chakravarty, S., Cantor, J., Tong, J. & DeLia, D. "Advancing New Jersey Safety Net ACOs: New Findings on Opportunities for Better Care and Lower Costs." State House Seminar, 2013.
• Cantor, J. "New Jersey Safety Net ACOs: New Findings on Opportunities for Better Care and Lower Costs." PICO New Jersey Conference, Promoting Good Care: Innovation and Organizing in Health Care, Newark, New Jersey, 2013.
• DeLia, D. "Statistical Risks in the Establishment of ACO Expenditure Savings." Seventh National Medicaid Congress, Arlington, Virginia, 2012.
• DeLia, D. "How Exactly Will Providers Be Held Accountable? Emerging Methods of ACO Performance Measurement." Corporate Research Group, Webinar, 2012.
• DeLia, D., Cantor, J. & Hoover, D. "Critical Issues in Performance Evaluation for Medicaid ACOs." Academy Health Annual Research Meeting, Seattle, Washington, 2011.

Reports

• DeLia, D., Kumar, R., Nova, J., Lloyd, K. & Goldin, D. (2018). "Spending and Utilization Indicators in the New Jersey Medicaid ACO Demonstration Project." Rutgers Center for State Health Policy.
• DeLia, D., Yedidia, M. & Lontok, O. (2018). "Update on ACO Operations and Care Management Strategies in the New Jersey Medicaid ACO Demonstration Project." Rutgers Center for State Health Policy.
• Cantor, J., Chakravarty, S., Tong, J., Yedidia, M., Lontok, O. & DeLia, D. (2014). "The New Jersey Medicaid ACO Demonstration Project: Seeking Opportunities for Better Care and Lower Costs among Complex Low-Income Patients." Rutgers Center for State Health Policy.
• Yedidia, M., Lonok, O. & Cantor, J. (2013). "Development of Medicaid Accountable Care Organizations (ACOs) in Three New Jersey Communities." Rutgers Center for State Health Policy.
• DeLia, D. & Cantor, J. (2012). "Recommended Approach for Calculating Savings in the NJ Medicaid ACO Demonstration Project." Rutgers Center for State Health Policy.