Accountable Care Organizations: On the Rise, but with Question Marks - Health Minute for December 26, 2013

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Accountable Care Organizations: On the Rise, but with Question Marks - Health Minute for December 26, 2013

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Health care providers formed or joined Accountable Care Organization http://3bl.me/k5rp2t quadrupled in last yr #Health Minute @3BLMedia

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Thursday, December 26, 2013 - 4:15pm

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The number of health care providers who formed or joined an Accountable Care Organization has quadrupled since last year. That’s according to data from Premier’s 2013 Economic Outlook, which surveyed 115 C-level executives in 35 states. More than three-quarters of those respondents said they had plans to join one of the 500 existing ACOs. The survey indicates that ACO participation could meet the 50 percent mark by the end of next year.

That optimistic projection compares with another recent survey of 200 health care executives. Half of the respondents in a poll by Purdue Healthcare Advisors said they had no plans for an ACO. The main reason? They are waiting to get more answers on how the model works in practice. The Premier survey also reported that the providers most likely to engage in ACOs are those that are part of a larger system located in an urban area. That’s due to the large investments in technology, such as electronic health records, and personnel, such as care coordinators, needed to form an ACO.

Both surveys found that the most common business model is an upside shared savings program that produces revenue by meeting quality and cost targets. Early returns from initial ACOs show that clients have fewer in-patient days in a hospital, fewer emergency room visits, and fewer high-tech tests. Hospital readmission rates also dropped. The bottom line for ACOs seems to be, do what’s best for the patient and the profits will follow.

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Video Source: Accountable Care Organizations: On the Rise, but with Question Marks

Keywords: 3bl media llc | Accountable Care | Health | Premier’s 2013 Economic Outlook | acos

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