The IRS Turns Its Attention To ACOs

I will admit to being a bit confused by the logic of the just-released Internal Revenue Service (IRS) ruling on an accountable care organization (ACO). On April 8, the IRS issued a ruling (see Internal Revenue Service Determination Letter Denying Tax-Exempt Status To Commercial ACO Not Participating In Medicare Shared Savings Program) that denied a tax exemption sought by an ACO that works for a commercial health plan. The reason was that the organization did not meet the test for tax-exempt status because it was not operated exclusively for charitable purposes and it provided private benefits to . . .