Accountable Care Organizations – Are they the answer?
There was an interesting Op-Ed piece in the New York Post on November 22 by Scott Gottlieb. Over the last few months we've been seeing more and more interest in Accountable Care Organizations (ACO). Some are saying this is the answer to controlling healthcare costs; others are saying this will speed up the rising costs of healthcare. At this point the verdict is still out since we are in the early stages of this process. What we do know is that healthcare today is very fragmented and uncoordinated. Ask anyone who has been in the hospital for a period of time and you hear a consistent story. Doctors are highly specialized and don’t talk to each other. A patient may have 3 to 7 different doctors working with a patient and at times they are not on the same page of care coordination. The ACO’s were created to bring sanity to a fragmented process. It looks good on paper, but can you execute on this idea? It will require technology, a willingness on the part of providers to communicate with each other and with members, etc.
It’s important we review the pros and cons of ACO’s. Another excellent piece appeared in the recent Wall Street Journal giving a good balance to both sides of the argument ACO argument. The bottom-line is that the current system is not working, and healthcare delivery must change. The biggest challenge within the ACO’s is determining a fair pricing model for all involved. Also, a rational payment methodology must be incorporated for the participants who go outside the ACO for care. Are ACO’s the answer? Stay tuned.