As Congress enters the final stretch of its legislative calendar, the Senate has a critical opportunity to strengthen value-based care and improve patient outcomes. In late June, the House overwhelmingly passed H.R. 5347, the Health Care Efficiency Through Flexibility Act, bipartisan legislation that would provide Accountable Care Organizations (ACOs) with needed flexibility as they transition to digital quality measurement while reducing unnecessary administrative burdens. Now, the Senate must act.
The Healthcare Leadership Council (HLC) strongly supports this legislation and commends Representatives Vern Buchanan (R-FL), Dan Crenshaw (R-TX), Darin LaHood (R-IL), and Jimmy Panetta (D-CA) for their leadership in advancing this common-sense policy.
ACOs Are Delivering Better Value for Patients
At a time when healthcare leaders are working to improve outcomes, strengthen coordination, and reduce unnecessary costs, ACOs have a proven track record of accomplishing these goals. CMS reported that ACOs achieved $2.4 billion in Medicare savings in 2024, the highest performance since the inception of the Medicare Shared Savings Program (MSSP). By aligning incentives around quality and outcomes rather than volume, ACOs have helped drive innovation in care delivery, encourage collaboration among providers, and improve the patient experience.
The continued success of value-based care depends on ensuring that providers have the tools, flexibility, and certainty needed to participate and succeed in these models.
Supporting the Transition to Digital Quality Measurement
HLC believes a fully digital and interoperable healthcare system is essential. Real-time quality measurement and seamless data exchange will ultimately improve care coordination and help providers better serve patients.
However, CMS’ digital quality reporting for MSSP ACOs, which took effect in 2025, has presented significant technical and operational challenges, particularly for smaller and less-resourced organizations. Without appropriate flexibility, providers could face burdens that distract from patient care and discourage participation in value-based care models.
A Practical, Bipartisan Solution
The Health Care Efficiency Through Flexibility Act takes a thoughtful and balanced approach to addressing these challenges. The legislation provides additional flexibility during the transition to digital quality measurement, allowing ACOs to use multiple reporting pathways through 2029 as they develop the technological and operational capabilities needed to make the shift successfully.
The bill also establishes a pilot program that allows providers to test and refine electronic quality measures in real-world settings.
By reducing unnecessary administrative burdens while maintaining accountability, the bill helps ensure organizations are supported as they modernize their capabilities rather than being penalized for circumstances beyond their control.
Advancing Interoperability Without Leaving Providers Behind
A fully interoperable healthcare system remains a shared goal across the healthcare ecosystem. Digital quality measurement will play an important role in that future, enabling more seamless data sharing, stronger care coordination, and better insight into patient outcomes.
But successful transformation requires a realistic path forward. Healthcare organizations are making substantial investments in technology, workforce training, analytics, and data-sharing capabilities. H.R. 5347 provides the certainty needed to ensure those investments can be made successfully while preserving participation in value-based care initiatives.
The Senate Should Act Quickly
The House’s resounding bipartisan support for H.R. 5347 shows the desire to cut unnecessary red tape and administrative burden providers currently face. Ultimately, this legislation will help strengthen value-based care, support providers during an important transition, and advance the long-term goal of a more connected and efficient healthcare system.
The Senate has an opportunity to build on that momentum. With reporting requirements already in effect, providers need certainty now, as they continue investing in the systems and capabilities needed to participate successfully in value-based care.
HLC urges the Senate to swiftly pass the Health Care Efficiency Through Flexibility Act and send it to the President’s desk. Doing so will help ensure providers remain focused on what matters most: delivering high-quality, coordinated care while continuing the transition to a more connected, efficient, and patient-centered healthcare system.
Through continued collaboration with policymakers and stakeholders, HLC will work to advance value-based care, enhance interoperability, and improve healthcare for all Americans.
