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Perspective
Implications for ACOs of Variations in Spending Growth
The Medicare Pioneer and Shared Savings Accountable Care Organization (ACO) programs offer health care provider organizations contracts with Medicare whereby the organizations assume financial risk and are rewarded for providing high-quality care at lower cost. ACO spending targets will be…
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Perspective
Keeping Score under a Global Payment System
It is widely acknowledged that continued growth in health care spending is threatening the viability of the U.S. health care system. Although there are no clear comprehensive solutions to this problem, most observers see payment reform as the next best hope for reining in out-of-control costs. Our…
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Perspective
Achieving Accountable Care — “It's Not About the Bike”
In his memoir It's Not About the Bike: My Journey Back to Life, seven-time Tour de France champion Lance Armstrong argues that winning the world's greatest bike race does not depend in the final analysis on sophisticated bicycles. Although advanced equipment is very important, winning depends more…
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Perspective
Building the Path to Accountable Care
The recent release of the regulations that will govern the early years of Medicare's implementation of accountable care organizations (ACOs) provides an important moment to reflect on the transition to this new payment model, which offers health care providers flexible financial support for…
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Perspective
Making Good on ACOs' Promise — The Final Rule for the Medicare Shared Savings Program
During my career as a practicing pediatrician, my patients and I benefited from being part of a well-managed system of care, coordinated and financed to support seamlessness and patient-centeredness. We had an electronic health record — always available and up to the minute — which reminded me…
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Perspective
Lessons from the Physician Group Practice Demonstration — A Sobering Reflection
In early August, the Center for Medicare and Medicaid Services (CMS) announced the results of the Physician Group Practice (PGP) Demonstration project. Although the headline of the press release was glowing — "Physician Group Practice Demonstration Succeeds in Improving Quality and Reducing Costs"…
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Perspective
The ACO Rules — Striking the Balance between Participation and Transformative Potential
In April, the Centers for Medicare and Medicaid Services (CMS) issued a long-awaited Notice of Proposed Rulemaking with a proposed policy for the accountable care organization (ACO) program authorized by the Affordable Care Act (ACA). Under this policy, ACOs could participate in one of two types of…
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Perspective
A Model Health Care Delivery System for Medicaid
Medicaid and the State Children's Health Insurance Program insure more than 76 million low-income patients. When the Patient Protection and Affordable Care Act (ACA) is fully implemented, Medicaid will cover an additional 16 million people who are currently uninsured. Many of the newly insured will…
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Perspective
Spending to Save — ACOs and the Medicare Shared Savings Program
Before the ink was dry on the proposed rule spelling out requirements for accountable care organizations (ACOs) under the Medicare Shared Savings Program, the criticism began coming fast and furious, much of it claiming that the Centers for Medicare and Medicaid Services (CMS) had set the bar way…
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Perspective
Launching Accountable Care Organizations — The Proposed Rule for the Medicare Shared Savings Program
A common criticism of U.S. health care is the fragmented nature of its payment and delivery systems. Because in many settings no single group of participants — physicians, hospitals, public or private payers, or employers — takes full responsibility for guiding the health of a patient or…
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Perspective
The ACO Model — A Three-Year Financial Loss?
The accountable care organization (ACO) model is rather controversial among health care experts. Its proponents tout the potential savings and coordinated care that could be achieved through this model.Others, however, point out that the model is not without risks, such as the potential for…
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Perspective
Accountable Care at Academic Medical Centers — Lessons from Johns Hopkins
In response to the Affordable Care Act (ACA), academic medical centers (AMCs) will need to address both financial and cultural barriers to the implementation of new care and payment models such as accountable care organizations (ACOs) — provider-based delivery systems that offer payment…
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Perspective
Accountable Care Organizations at Academic Medical Centers
Is the accountable care organization (ACO) a suitable model for academic medical centers to follow in their efforts to control the cost of caring for patients while delivering superior, coordinated care? To explore this question, I talked with 37 senior faculty members and administrators at…
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Perspective
Assessing an ACO Prototype — Medicare's Physician Group Practice Demonstration
One of the few major provisions of the Affordable Care Act (ACA) with solid bipartisan support establishes a new delivery model: the accountable care organization (ACO). Congress directed the Department of Health and Human Services (DHHS) to develop an ACO program to improve the quality of care…
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Perspective
ACOs and the Enforcement of Fraud, Abuse, and Antitrust Laws
Hospitals and physicians are eagerly awaiting regulations for accountable care organizations (ACOs), which many observers view as the best hope provided by the Patient Protection and Affordable Care Act (ACA) for needed delivery system reform. Starting in 2012, health care providers in ACOs that…
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Perspective
Accountable Care Organizations — The Fork in the Road
Despite the uncertainty and controversy it has generated, the Patient Protection and Affordable Care Act (ACA) has sown the seeds for a major reorganization of the U.S. health care delivery system. In almost every region of the country, hospitals and physicians are forming (or talking about forming)…
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Perspective
Physicians versus Hospitals as Leaders of Accountable Care Organizations
Enactment of the Affordable Care Act (ACA) was a historic event. Along with the Recovery Act, the ACA will usher in the most extensive changes in the U.S. health care system since the creation of Medicare and Medicaid. Under this law, the next few years will be a period of what economists call…
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Perspective
Patients' Role in Accountable Care Organizations
If ever there were a crisis moment that crystallized the need for reforming the U.S. health care delivery system, this is it. The 2010 Affordable Care Act (ACA) promises to expand health insurance coverage, a key first step toward improving health equity. But newly insured Americans will gain…
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Perspective
Becoming Accountable — Opportunities and Obstacles for ACOs
The Patient Protection and Accountable Care Act (ACA) requires the secretary of health and human services to establish a program within Medicare in which savings from efficient, high-value care are shared with accountable care organizations (ACOs). No demonstration project, this is the start of an…
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Perspective
Perspective Roundtable: Creating Accountable Care Organizations
Under the Affordable Care Act, Medicare will launch a Shared Savings Program for groups of health care providers that join forces, with or without hospitals or health plans, to form legal entities that agree to take responsibility for the quality, cost, and overall care of a population of patients.…
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