New Analysis in Health Affairs Article Finds ACO Savings Difficult to Achieve Without IT | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

New Analysis in Health Affairs Article Finds ACO Savings Difficult to Achieve Without IT

October 4, 2012
by Mark Hagland
| Reprints
A new study finds that, without strategic IT and care coordination, ACOs might not save much money

A study by David M. Eddy, M.D. and Roshan Shah that was published online in Health Affairs on Oct. 3 found that the strategic use of information technology and the use of care coordination will be necessary in order to achieve sustained performance gains in accountable care organizations.

Indeed, Eddy and Shah state in “A Simulation Shows Limited Savings From Meeting Quality Targets Under The Medicare Shared Savings Program,” which also appears in the October print issue of Health Affairs, that “We found that a ten-percentage-point improvement in performance on diabetes quality measures would reduce Medicare costs only by up to about 1 percent.” What’s more, the authors say in the abstract to their study, “After the costs of performance improvement, such as additional tests or visits, are accounted for, the savings would decrease or become cost increases. To achieve greater savings, accountable care organizations will have to lower costs by other means, such as through improved use of information technology and care coordination.”

Eddy and Shah used a simulation model to analyze the effects of the Medicare Shared Savings Program quality measures and performance targets on Medicare costs in a simulated population of patients aged 65 to 75 with type 2 diabetes.
 

Topics

News

NewYork-Presbyterian, Walgreens Partner on Telemedicine Initiative

NewYork-Presbyterian and Walgreens are collaborating to bring expanded access to NewYork-Presbyterian’s healthcare through new telemedicine services, the two organizations announced this week.

ONC Releases Patient Demographic Data Quality Framework

The Office of the National Coordinator for Health IT (ONC) developed a framework to help health systems, large practices, health information exchanges and payers to improve their patient demographic data quality.

AMIA, Pew Urge Congress to Ensure ONC has Funding to Implement Cures Provisions

The Pew Charitable Trusts and the American Medical Informatics Association (AMIA) have sent a letter to congressional appropriators urging them to ensure that ONC has adequate funding to implement certain 21st Century Cures Act provisions.

Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.