Accountable Care Organizations have been attracting a lot of
attention lately, with the recent article in The New York Times and Don Berwick
reportedly advising some Pioneer ACOs in their dispute with CMS about how to
measure quality. Here on the TJU campus, Jonathan M. Niloff, MD, spoke at the
JSPH Forum on ACOs and ways of achieving organizational alignment and
management through healthcare transformation. Dr. Niloff, Chief Medical Officer
for MedVentive, is responsible for the strategic development of population
health analytics and solutions.
ACOs take up only seven pages of the new health law yet have
become one of the most talked about provisions. This latest model for
delivering services offers doctors and hospitals financial incentives to provide
good quality care to Medicare beneficiaries while keeping down costs. An ACO is
a network of doctors and hospitals that shares responsibility for providing
care to patients. In the new law, an ACO would agree to manage all of the
health care needs of a minimum of 5,000 Medicare beneficiaries for at least
three years.
During his talk at the May 9 JSPH Forum, Dr. Niloff
described the often difficult realities of making an ACO work. A successful ACO
implies less revenue per patient – a scary proposition for any health system.
In an environment of less revenue per patient, it is crucial to keep the
patients that were going out of the system, within the system. Growing the
network is also vital. “Ultimately, it’s about aligning more physicians,
gaining the allegiance of more physicians to your program to drive better
coordination of care.” A successful ACO also requires a population health
approach to managing healthcare by identifying patients most at risk and
putting programs in place that captures those patients and drives specific
programs focused on improving quality and coordination of care.
One health provider that seems to have this figured out is
Advocate Health Care, based in Oak Brook, Ill. Described in The New York Times
piece as an innovator in the accountable care approach, Advocate Health Care
has seen hospital admissions decline nearly 9 percent. The average length of
stay has declined, and many other measures show them providing less care, too.
Under Advocate’s deal with Blue Cross Blue Shield, certain patients are
assigned to the accountable care framework – about 380,000 – and their health
costs are projected. If Advocate achieves savings below that amount while
meeting explicit quality targets, it splits the money with the insurer. If not,
its revenue is at risk.
The Affordable Care Act has helped encourage a shift to
Advocate’s payment model – an estimated 428 accountable-care organizations now
cover four million Medicare enrollees and millions more people with private
insurance.
Still, many remain skeptical that we have arrived at the
right set of measures to allow us to declare one ACO a success and another a
failure. Perhaps what is needed is a set of definitive measures, beyond
readmission rates and average length of stay, that can tell us how a specific
population is doing.
I’m sure that by now, many of you have had experience with
ACOs. What are your thoughts? Are ACOs part of the answer to alleviating
Washington’s long-term deficit problems? Feel free to weigh in on this issue in
the comment field below.



