Accountable Care Organizations (ACOs)

Seven Pioneer accountable care organizations (ACOs) that did not produce savings in the first year of the Pioneer program will switch to another ACO model--the Medicare Shared Savings Program (MSSP)--and two others in the Pioneer program will abandon Medicare accountable care models altogether, according to an announcement from the Centers for Medicare & Medicaid Services (CMS).

A new poll conducted by the American College of Physician Executives (ACPE) reveals that the trend of physician integration may drive up costs, rather than decrease it through increased efficiency and streamlining care. Thirty-two percent of the 459 organizations surveyed said the costs of delivering healthcare went up after a hospital or health system bought a group or practice.

Aetna and the 19-hospital Bon Secours Health System, based in Marriottsville, Md., have announced a new accountable care agreement that will support 57,000 fee-for-service Medicare beneficiaries in Kentucky, New York, South Carolina and Virginia.

During the afternoon breakout session at the HCI Executive Summit, Simon Jones, director, ACO IT and program strategy at Blue Shield of California, discussed the health plan’s experience in the ACO arena. Jones noted that healthcare is on an unsustainable path: there is no sustainable approach to reducing costs and improving care, and incentives do not promote a long-term, system-wide approach.

Razor-thin reimbursements, conflicting priorities and strained resources are the main challenges health systems face as they struggle to manage post-acute care effectively, according to the latest report from Orem, Ut.-based KLAS Research, “Post-Acute Care Perception 2013: High Hopes and Big Plans.”