By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    improving patient experience
    6 Ways to Improve Patient Satisfaction Within Hospitals
    December 1, 2021
    degree for healthcare job
    What Are The Health Benefits Of Having A Degree?
    March 9, 2022
    custom software development is changing healthcare
    Digital Customer Journey Mapping and its Importance for Healthcare
    July 21, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Can Thinking Younger Make You Live Longer?
    April 20, 2011
    Image
    Obesity’s Outlook Unchanged
    June 13, 2011
    When It’s An Emergency Elderly Not Treated As Well in Hospitals
    July 16, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Pioneer ACOs: Some Say Risk Not Worth Reward
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Pioneer ACOs: Some Say Risk Not Worth Reward
BusinessFinanceHealth ReformHospital AdministrationPublic Health

Pioneer ACOs: Some Say Risk Not Worth Reward

DanyellJones
Last updated: August 12, 2013 8:00 am
DanyellJones
Share
5 Min Read
pioneer ACOs
SHARE

Pioneer ACO Experiment Produces Mixed Results

pioneer ACOsAfter a one year experiment with the Medicare Pioneer Accountable Care Organization (ACO) Model which has 32 participants, nine of these organizations will be transferring to another Medicare shared savings program, while two are dropping from the program completely.

Contents
Pioneer ACO Experiment Produces Mixed ResultsPioneer ACO Experiment Produces Mixed ResultsPioneer ACOs Leaving the Program

Pioneer ACO Experiment Produces Mixed Results

pioneer ACOsAfter a one year experiment with the Medicare Pioneer Accountable Care Organization (ACO) Model which has 32 participants, nine of these organizations will be transferring to another Medicare shared savings program, while two are dropping from the program completely.  Another 10 organizations saw no cost savings in the first year, but have remained in the program.

ACOs are groups of physicians, hospitals and other health-care providers that band together to assume financial responsibility for patients.  An ACO takes responsibility for the care of an assigned patient and for ensuring that the patient receives access to both primary care physicians and needed specialists.  If the patient has to go outside of the ACOs network of providers, the ACO sustains a financial penalty.  The overall idea is to pay physicians for quality of care rather than volume of services, and those ACOs who achieved certain quality benchmarks for high quality low cost care would receive a portion of the shared savings, while those who do not demonstrate this ability would face a penalty.

A Medicare spokesperson has stated that “the results show that successful Pioneer ACOs have reduced costs for Medicare and improved the quality of care for their patients.” However, some healthcare experts say that the picture is not as rosy, at least from a financial perspective.  In fact, although the program reported an overall savings of $87.6 million only 13 of the pioneers experienced a level of savings adequate to qualify for shared savings, and two of the Pioneer ACOs ended up owing the Medicare program $4 million dollars, despite the ACOs heavy investment in staffing and infrastructure to support the model requirements.

More Read

Are You Engaged Yet?
URAC vs. PCAB Pharmacy Accreditation
Fundamental Facts About Patient Education
How to Extend a CAP Checklist for Increased Research Capabilities
Nixed NHS Procedures Spark Concern for Varicose Vein Patients

In fact the Pioneer ACO program has been experiencing both success and failure on large scales throughout the duration of the experiment.  Earlier this year several organizations threatened to drop out of the program if CMS was unwilling to revise certain quality and pay for performance measures, and several high profile organizations declined to apply.  Though the Pioneer ACO program is one of many initiatives which was launched to evaluate potential cost savings as part of the Affordable Care Act, it was never intended to be a primary value inducer.  Experts have pointed out two primary hurdles to the Pioneer ACO model which, according to Tom Cassel include:

  • “the programs administrative complexity”; and
  • “the limited upside its financial model presents for even the most successful ACOs”

Other problems cited include data sharing barriers, and discrepancies regarding quality metrics.

Pioneer ACOs Leaving the Program

The following Pioneer ACOs will be leaving the program and transferring to the Medicare Shared Savings Program:

  • Prime Care Medical Network Inc.
  • University of Michigan
  • Physician Health Partners LLC
  • Seton Health Alliance
  • Plus (North Texas Specialty Physicians and Texas Health Resources)
  • Healthcare Partners Nevada ACO LLC
  • JSA Care Partners LLC
  • Presbyterian Healthcare Services

Additionally, Presbyterian Healthcare Services of New Mexico has dropped out of the program altogether as well as another entity whose name has not yet been announced.

For those Pioneer ACOs still in the program year two is anticipated as being the make or break point for the pilot overall in terms of success and efficacy.  In the meantime helathcare experts are holding their breath and awaiting the findings to determine if the risk really will be worth the reward.

(ACO experiment / shutterstock)

TAGGED:ACO
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025
Learn how to Renew your Medical Card in West Virginia
Learn how to Renew your Medical Card in West Virginia
Health
May 15, 2025
Dr. Klaus Rentrop Shares Acute Myocardial Infarction heart treatment
Dr. Klaus Rentrop Shares Acute Myocardial Infarction
Cardiology
May 13, 2025

You Might also Like

healthcare insurance industry customer service
BusinessNews

Health Insurance Industry Has Worst Customer Service – Survey Says

February 24, 2012

The Continuing Explosion in Healthcare Costs

March 8, 2013

Costs of Care 2012 Essay Contest Winner: Looking for a Light Switch

February 12, 2013
medicare data release
BusinessFinanceHealth ReformHospital AdministrationPolicy & LawPublic Health

Medicare’s Data Release Places More Power in Hands of Informed Medical Consumers

May 9, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?