Question

As managed care has evolved, new delivery systems have been established. One such delivery

             system is the Accountable Care Organization (ACO) . Describe the ACO its beginnings, overall

             objectives, its structure and key features. Managed care companies are partnering with providers

             to establish ACO’s. Discuss the positive or negative impact the ACO will have on reducing

             health care costs while producing quality outcomes.   

Answer 1

Positive and Negative impact of the ACO on reducing Health care cost:

• Accountable Care organizations improve the quality of patient care and coordinate the services of health care providers.
• Physicians will receive the payment based on the quality of care provided not on quantity.
• ACO promotes patient-centered care and involves the patient and families in decision making.
• It promotes the effective use of health care resources and reduces health care costs.
• ACO improves the communication between the primary and speciality doctors thereby the provides high-quality care.
• ACO doesn't benefit in small size hospital.
• This leads to increased turn over rate of physician and leads to demand for the physician in future.
• Implementation of ACO is expensive and indirectly increases the cost of the health care organization.
• It increases contraversion due to shared decision making.
• Health information technology needs to be more secure to protect patient data and privacy which increases the health care cost.
• Hospitals need to get away from fee for service model which loses the experienced physicians.