Question

Book: Introduction to the Financial Management of Healthcare Organizations (6th Edition).

Bobcat IDS case study question number 5.

Would this response be correct?

Advantages and disadvantages to Affordable Care Act (ACA) in regards to Accountable Care Organizations.
Under the affordable care act umbrella, more Americans are insured and are able to receive preventive care; Accountable Care Organizations emphasize coordination of care by a provider. Financial incentives are offered to organizations that take active responsibility for care rendered; Physicians benefit by ordering less tests and procedures. The government pays one lump sum with incentives it costs are kept to a minimum; the ACO is 75% provider controlled.
Although the ACA is designed to reduce costs it has increased costs when it mandated the implementation of electronic health records; it also required the submission of quality data and provider control of 75%. Private practices closed their doors and those providers were absorbed by the larger hospital facilities. To capture the administrative productivity, relative value units help but do not reward organizations for quality care. Physicians may no longer appear on the provider list for the insured, and the provider list may also be shortened.   These mandates and the timeliness of them have placed financial and administrative burden on health care providers, leaving feelings of dissatisfaction and less choices for the consumer.

Answer 1

Answer: The main purpose of the ACA is to reduce the cost of the health care.

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