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
    photo of hands with blue veins
    8 Proven Tips on Finding Difficult Veins
    November 12, 2021
    tips for getting over the pandemic blues
    4 Proven Ways to Get Over the Pandemic Blues
    February 22, 2022
    medical industry innovations
    How is CNC Machining Transforming the Medical Industry?
    June 2, 2022
    Latest News
    First Aid Training Enhancing Workplace Health and Safety
    September 25, 2023
    Beyond the Clinic: Medical Surveys Are a Roadmap to Passive Income for Doctors
    September 23, 2023
    5 Self-Care Habits to Help You Live an A+ Life
    September 21, 2023
    Keep Employees Safe & Healthy By Reducing Warehouse Injuries
    September 20, 2023
  • 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
    Here’s How Blockchain Can Benefit Healthcare, And Why It Matters
    January 31, 2019
    Obamacare “Is a Hacker’s Dream”
    November 1, 2013
    legacy healthcare systems
    Five Reasons to Replace Legacy Healthcare Systems
    July 27, 2023
    Latest News
    Job Seekers with Disabilities Should at Health Insurance Benefits
    September 12, 2023
    Reasons That Drug Prices Are Rising to Unsustainable Levels
    September 12, 2023
    How Revenue Lifecycle Management Helps Healthcare Providers to Optimize Business Operations
    September 6, 2023
    The Hidden Benefits of Practice Exams for Medical Professionals
    September 6, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Should You Give Up on ACOs?
Share
Sign In
Notification Show More
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Should You Give Up on ACOs?
BusinessFinance

Should You Give Up on ACOs?

Abby Norman
Last updated: 2014/10/30 at 8:11 AM
Abby Norman
Share
6 Min Read
ACO
SHARE

ACOAnytime a major change occurs in healthcare, and organizations are asked to change the way they operate, the first thing they should consider is the bigger picture; the risk-benefit analysis of choosing to say “yay or nay” to the proposed changes.

ACOAnytime a major change occurs in healthcare, and organizations are asked to change the way they operate, the first thing they should consider is the bigger picture; the risk-benefit analysis of choosing to say “yay or nay” to the proposed changes. Accountable Care has been, for a while now, the most-talked about endeavor to change American healthcare, and while it’s been relatively painless for some organizations to adopt, others have not had such of easy time of it.

As we’ve stated many times before, the ACO ideal is a solid one, and one that in theory should address some of the out-of-control costs that we are attempting to rectify: by having our patients participate in a network of providers that can be held accountable not just for the quality of care, but the cost, we are making it much easier for healthcare organizations to track quality measures, cost and analyze it next to patient outcomes. By making connections between the kind of care we provide, and how much money we spend, to how the experience of patients, we can then justify our needs – and the needs of our patients – to those responsible for doling out our financial resources.

This might sound reminiscent of another healthcare endeavor: the patient-centered medical home (PCMH). If it sounds familiar, it’s likely because more and more healthcare systems are adopting the concept. The PCMH model of care takes disconnected primary care practices and laces them together through care coordination measures and infrastructures put in place to build a robust network of support for patients. PCMH and ACOs intersect at the ideal that patients should have consistent access to quality care and that no one should be breaking the bank – payers, providers or patients.

More Read

get a career in medical device sales

What Are the Benefits of Attending Medical Sales College?

Subscription Management Solutions Are Crucial for Telemedicine
Comfort And Safety: 7 Ways Healthcare Organizations Can Create A Better Environment For Their Patients
4 Points to Remember Before You Start Off Your Next Medical Presentation
Best Practices for Healthcare Call Centers Should Follow in 2023

All that being said, some healthcare organizations are finding that while ACOs might be remarkable in theory, they are really a struggle to put into practice. There comes a time when the risk/benefit profile may suggest that the time isn’t right for ACO adoption – but how can healthcare systems evaluate if that’s true for them?

Data from the Centers for Medicare and Medicaid that have been providing an ongoing evaluation of some pilot ACO programs suggest that it’s hard to know, in the short term, if ACOs are effective. This is partially because the cost-savings can really only be evaluated on a longitudinal basis – and early data that shows up front costs may offset the actual cost-savings that would be visible after several years in the program. A few of these initial pilot programs however are well into their second or third year, and while some have reported savings already, a few notable others have ditched the program – or, opted not to begin reporting their outcomes for at least another year.

For hospitals who decided to leave the program entirely, though, it’s probably necessary to understand what the financial outlook was for those organizations prior to the implementation of ACOs. After the first year savings report was released, many hospitals had paused to reflect on whether or not they felt that they could invest another year of time and resources – ultimately, those that did not had less experience in cost-sharing programs, either at a clinical or administrative level- and the relatively lack of experience probably gave them a handicap right out of the starting gate.

Alternatively, hospitals that did have previous cost-sharing experience not only were more likely to see savings and avoid losses, but were more confident in the long-term benefit of ACOs for their organization.

Just because your organization doesn’t have a lot of experience with cost-sharing doesn’t mean you’re necessarily doomed when it comes to ACOs, but it might mean that you need to approach the implementation more thoughtfully. You likely could benefit from a bit more support at the outset and help with monitoring your benchmarks along the way.

It’s still much too soon in the game to say, definitively, whether ACOs are the fix for the ailing healthcare system. That being said, it’s now up to each individual organization to concern themselves with improving their own processes, and for some, ACOs might be a step in the right direction.

TAGGED: ACOs

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Abby Norman October 30, 2014
Share This Article
Facebook Twitter Copy Link Print
Share
By Abby Norman
My name is Abby Norman and I am a healthcare blogger. With over 10 years of experience in the medical field, I have developed a passion for helping others understand the complexities of healthcare.
Previous Article Advantages of Population health Physicians Finding the Joy in Population Health
Next Article future health technology Big Names Changing the Future of Personalized Patient Care

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

workplace first aid training
First Aid Training Enhancing Workplace Health and Safety
Health September 25, 2023
Anxiety Disorder
The Importance of Nutrition in Anxiety Disorder Treatment
Anxiety September 24, 2023
spinal health
How to Advocate For Your Spinal Health In A Healthcare Setting: Strategies From Dr. Brandon Claflin
News September 24, 2023
Medical Surveys
Beyond the Clinic: Medical Surveys Are a Roadmap to Passive Income for Doctors
Health September 23, 2023

You Might also Like

medical billing training
Medicare

Navigating Through the Essentials: Medical Billing Training for Beginners

September 12, 2023
healthcare providers
Hospital Administration

How Revenue Lifecycle Management Helps Healthcare Providers to Optimize Business Operations

September 6, 2023
optimize healthcare business
News

Top Tips To Optimize Operations In Your Healthcare Office

June 30, 2023
Endocrinology
Hospital Administration

Improving Endocrinology Revenue Recovery is Crucial

June 14, 2023
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US
© 2008-2023 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Lost your password?