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A tale of two ACOs.

Elizabeth Whitman

Modern Healthcare

|February 5, 2019

Summary

This summary is machine-generated.

Accountable care organizations (ACOs) show varied success, with profitability depending heavily on an organization's starting point. This initial condition presents a significant challenge for ACOs aiming for shared savings.

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Area of Science:

Healthcare Management
Health Economics
Health Policy

Background:

Accountable care organizations (ACOs) are increasingly adopted by healthcare systems and physician practices.
The financial success and shared savings models within ACOs are under scrutiny.
Variability in ACO performance necessitates an understanding of contributing factors.

Purpose of the Study:

To analyze the factors influencing the success of ACOs.
To investigate the relationship between starting conditions and ACO profitability.
To identify challenges in achieving shared savings within ACOs.

Main Methods:

Review of ACO performance data.
Analysis of financial outcomes based on initial organizational status.

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Comparative study of ACO models.

Main Results:

ACOs are producing inconsistent financial results.
Profitability from shared savings is significantly influenced by the initial resources and structure of the participating organization.
The starting point is a critical, yet problematic, determinant of ACO financial success.

Conclusions:

The success of ACOs is not uniform and is heavily contingent on baseline factors.
Addressing the "starting point" problem is crucial for equitable and widespread ACO success.
Future strategies must account for initial disparities to optimize shared savings models.