"Speakers: ACO Regulations Uncertain, But Providers Should Still Start Integrating"
BNA’s Health Care Daily Report, October 14, 2010
Christopher Jedrey discussed regulation of accountable care organizations (ACOs). ACOs are evaluated for Medicare reimbursement on overall cost and quality of care, and Mr. Jedrey noted that this will require hospitals and physicians to change their current fee-for-service model that rewards volume of services provided. That paradigm shift will change the financial incentives of these providers, moving them toward bundled and shared savings payments, he added. Although participation in an ACO is voluntary and under current rules there is no clear incentives for physicians to join one, Mr. Jedry said that in the new health reform environment providers “will be leaving a significant amount of money on the table” if they do not integrate with an ACO.