When to Go ACO

CaduceusShadowI’ve traveled around and seen market after market and spoken with a range of health system leaders who are committed to participating in an accountable care organization (ACO) because they believe they have to. When looking at the facts – the structure of those markets, the health system’s share, the payer dynamics, and the overall economics – the runway to value-based models is often longer than they realize. As many systems that performed well in the past year as the result of aggressive cost containment will tell you, there is still a place for maximizing margin with traditional approaches. And this is important not because it will last forever, but because systems will need to fund the transition to the inevitable. Continue reading