Report questions ACOs' cost-effectiveness for providers

Share this article:

Accountable care organizations could very well improve the quality of healthcare, but incentivizing lower spending also could cause providers to cut corners, a new report suggests.

ACOs could be “the next great hope for many” — authors of a new research paper from The Urban Institute state in “Accountable Care Organizations in Medicare and the Private Sector: A Status Update.” But they might not be able to offer savings for participants or Medicare.

It should not take more than three years to determine ACOs' cost-effectiveness, the authors predict.

“By the end of 2012, we should know how successful [CMS's] program was in attracting provider interest in the ACO model in Medicare, and how extensively the private sector plans to experiment with this payment model,” the paper states. “Within a few years after that, we should have a much stronger evidence base about how to improve quality and reduce costs using ACO-style payment arrangements, given the experiments that Medicare and private sector providers and payers are currently embarking on.”

Click here to read the paper in full.

Share this article:

More in News

'Minor' issues at the nursing home can cause disastrous care transitions, expert warns

'Minor' issues at the nursing home can cause ...

What may appear to be minor administrative problems in a nursing home - a fax machine locked away at night or no one designated to copy paperwork - can cause ...

Long-term care facilities approach 80% worker flu vaccination rate after handing power ...

Fourteen long-term care facilities in Pennsylvania dramatically increased their staff flu vaccination rate by having a regional pharmacy take over the process, according to a report issued Thursday by the Agency for Healthcare Quality and Research (AHQR).

RACs were 'most improved' healthcare auditors for getting back money in 2013, ...

Medicare Recovery Audit Contractors dramatically stepped up their overpayment recoveries last year, returning nearly $487 million more to the government than they did in 2012, according to a new report from a federal watchdog agency.