The Centers for Medicare & Medicaid Services (CMS) recently selected 27 accountable care organizations (ACOs) from 50 applicants nationwide to receive capitated compensation under the Medicare Shared Savings Program, including two in California: 1) Physician-led Premier ACO Physicians Network, based in Lakewood, serving about 12,500 beneficiaries in the greater Long Beach and Orange County areas; and 2) AppleCare Medical ACO LLC, based in Buena Park, covering about 8,000 beneficiaries throughout southern Los Angeles and Orange counties. Over half of the 27 ACOs chosen nationwide are physician-led. Capitated compensation began for the selected ACOs on April 1, 2012. CMS is currently reviewing more than 150 more ACO applications for a July 1 start date.