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In August 2011, Governor Christie signed into law NJ P.L. 2011, Chapter 114 requiring DMAHS to establish a three year Medicaid Accountable Care Organization (ACO) demonstration project. ACOs are designed to improve health outcomes, quality and access to care through regional collaboration, and shared accountability while reducing costs.

The Medicaid ACO demonstration project provides the New Jersey Medicaid program an opportunity to explore innovative system re-design including; testing the ACO as an alternative to managed care; evaluating how care management and care coordination could be delivered to high risk, high cost utilizers; stretching the role of Medicaid beyond just medical services but to integrate social services; and, testing payment reform models including pay for performance metrics and incentives.

New Jersey ACO applicants are required to be a nonprofit organization serving a minimum of 5,000 Medicaid beneficiaries within a designated region. In addition, the ACO is required to contract with 100% of the hospitals, 75% of the primary care providers and at least four mental health providers within the intended service region.

The Division of Medical Assistance and Health Services reviews and certifies qualified applicants that meet the minimum requirements defined in the legislation.


NEW!  Accountable Care Organization Applications received by the State of New Jersey:

Camden Coalition of Healthcare Providers

Coastal Healthcare Coalition, Inc.

Healthy Greater Newark ACO

New Brunswick Health Partners

Passaic County Comprehensive Accountable Care Organization, Inc.

The Healthy Cumberland Initiative, Inc.

The Healthy Gloucester Initiative, Inc.

Trenton Health Team

The State of New Jersey is accepting comments on its Accountable Care Organization applications through Wednesday, August 27, 2014.

Forward comments to: Pam Orton, RN, MSN, Director, Office of Delivery System Innovation at, or mail comments to Pam Orton's attention to P.O. Box 712, Trenton, NJ 08625-0712.


Additional Accountable Care Organization Reference Material:

NJ Medicaid ACO Demonstration Project Quality Measures

Letter of Intent Memo for Accountable Care Organization Demonstration 

NJ Accountable Care Organization Application Form

For more information about Accountable Care Organizations, e-mail: Pam Orton, RN, MSN, Director, Office of Delivery System Innovation at:


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