Download PDF Report >>> Health Care Reform – Accountable Care Organizations
Kaiser health news recently came out with two documents providing clarification on Accountable Care Organizations or ACO’s that were included in the Affordable Care Act (ACA).
The mainstream media rarely discussed this. It comprised only seven pages of the health care law and dwelt with Medicare to which few critics paid serious attention.
For providers of health care, this offers a major change in the way Medicare operates. It delivers care at lower cost while maintaining quality. The ACO model can also apply to all patients, not just Medicare. Savings while maintaining quality care can run into the hundreds of billions of dollars.
A study of 4,272 hospitals found utilization levels at two of five most expensive hospitals more than 30% greater than at Mayo Clinics. The study covered Medicare patients who died. If that same service ratio held for all patients, those hospitals could generate annual savings of $170 Billion with no change in prices. The savings occur if they had hospital days and physician visits similar to Mayo. Continue reading