On January 26, the U.S. Department of Health and Human Services (“HHS”) announced the timeline to transition doctors and hospitals into a new Medicare payment system as part of HHS’ ongoing effort to move away from the current fee-for-service model and toward a payment system based on outcomes and efficiency. Specifically, HHS plans to tie 85% of Medicare payments to an outcome measure by the end of 2016, and 90% by the end of 2018. In addition, HHS plans to link 30% of Medicare payments to alternative payment models (such as ACOs) by the end of 2016, and 50% by the end of 2018. Currently, only 80% of payments are linked to outcome measures and 20% to alternative payment arrangements. HHS has not specified how it will meet these targets.