ACOs: The Least Agreed-Upon Concept in Healthcare? | Accountable Care Organizations
Five common arguments against accountable care organizations, commentary from experts on each, and an update on Detroit Medical Center’s ACO.
1. In the grand scheme of healthcare spending, ACOs’ savings will be slight.
2. ACOs were designed on a premise that overestimated the level of integration in healthcare.
3. ACOs won’t work when healthcare still operates in a fee-for-service system.
4. ACOs will move patients out of hospitals and hurt hospitals’ revenue.
5. ACOs take healthcare back to the 1990s.
What will prove the ACO model?
The healthcare industry is still in a waiting game as far as ACOs’ results. Although a few mature ACOs like AdvocateCare (and it’s important to keep in mind that the term “mature” means that ACO is only about three years old) have reported hopeful results from its first year. Other newly launched ACOs are not yet able to disclose results. For Medicare savings, the industry has its eye on the Pioneer ACOs, and results from those 32 organizations are expected this summer.