Accountable Care Organizations (ACOs) have the potential to help move the system away from the outdated fee-for-service system to one that incentivizes quality, value and better health outcomes for patients.
Health plans all across the country have partnered with providers to change payment models to promote and reward safe, high-quality, patient-centered care. By establishing clear quality goals, tracking progress and rewarding success, these programs are yielding significant results: better outcomes and lower costs for patients and employers.
Through the CMS Innovation Center, there is an opportunity for Medicare and Medicaid to begin to build on the successes of the innovative payment systems that exist in the private marketplace today. If implemented as intended, ACOs could improve the quality and safety of patient care and help put our system on a sustainable path.
Unfortunately, the ACO program’s current design is being built on the failed fee-for-service payment model. Moreover, the current ACO regulations could accelerate the trend of provider consolidation that drives up medical prices and results in additional cost-shifting to families and employers with private coverage.