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Solving the ACO conundrum.

John M Harris¹, Daniel M Grauman, Rashi Hemnani

¹DGA Partners. jharris@dgapartners.com

Healthcare Financial Management : Journal of the Healthcare Financial Management Association

|November 11, 2010

Summary

This summary is machine-generated.

Hospitals can benefit from accountable care organizations (ACOs) by improving quality and reducing costs. Financial leaders should analyze potential savings and volume changes to assess market share growth opportunities.

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Area of Science:

Health Economics
Healthcare Management
Health Policy

Background:

Accountable Care Organizations (ACOs) incentivize healthcare providers to improve quality and reduce costs.
Hospitals face strategic challenges, including potential volume loss, when considering ACO participation.

Purpose of the Study:

To guide hospital financial leaders in evaluating the financial implications of developing an ACO.
To emphasize the importance of analyzing both shared savings and volume changes within an ACO model.

Main Methods:

Financial analysis of ACO participation.
Assessment of potential impacts on hospital volume.
Evaluation of market share dynamics in relation to ACOs.

Main Results:

ACOs offer rewards for quality improvement and waste reduction.
A primary concern for hospitals is the potential for decreased patient volume.
Detailed financial analysis is crucial for understanding the net financial impact of ACOs.

Conclusions:

Hospital financial leaders must conduct thorough analyses of ACOs, considering both financial gains and potential volume shifts.
Assessing the potential for market share expansion through ACOs is a key strategic consideration.