Accountable Care Organizations (aka ‘ACOs’): Ellwood’s SuperMed Vision Lives!
The Patient Protection and Affordable Care Act is now law, and the ‘devil is in the details’ scramble is on both inside and outside the beltway. The great divide seems to (disproportionately) line-up between the let’s roll up our sleeves and get ‘er done crowd, and the perhaps politically motivated ‘denial-ists’ hoping to successfully challenge the constitutionality of the law.
Via a separate post, I will address the ‘managed care 2.0’ nature of what we’ll likely witness as one who’s been on the ground, and frontline of change since the early 80s when the Health Care Financing Administration (HCFA) sported a placard for a little known office titled the office of ‘alternative delivery systems’, the then tiny shop in Baltimore that monitored the growth of HMOs and it’s California derivative, and soon to be dubbed ‘preferred provider organizations (PPOs). What followed is quite a storied path….
Meanwhile, let me call your attention to a timely piece of work offered by Paul Keckley and the health policy braintrust at Deloitte, titled: ‘Accountable Care Organizations: A new model for sustainable innovation‘. The title abstract is reprinted below, or you may download the full report via the site link above.
To understand how accountable care organizations (ACOs) might drive payment reform in the public and private health care sectors, this paper reviews the basic origins, definition and drivers of ACOs, and describes key features of proposed ACO initiatives, including the federal government’s proposed pilot program. In addition, using an assessment of ACO literature and Deloitte analysis, the paper profiles four structural approaches that are eligible for ACO status and puts forth seven key capabilities that are important considerations for ACO performance. Finally, this paper offers Deloitte’s perspective on the path forward and describes potential innovations that could increase ACO adoption.
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