Got ACOs? The Future of Health Care Systems
Healthcare reform has brought Accountable Care Organizations (ACOs) into the spotlight again. This post highlights the positive and negative sides of ACOs and what they can bring to the healthcare industry.
The main arguments for why healthcare professionals should embrace ACOs include:
- Significant cost reductions, shared savings, and quality improvement; both in operations and outpatient care
- Improved ability to compete for the pool of Medicare/Medicaid patients
The flipside for applying the ACO model to the healthcare industry is that many ambiguities exists. This is uncharted territory, so:
- Administrators have no blueprint that can guide them in the right direction when creating an ACO
- The “how-to” form or participate in an ACO still remains to be addressed
From a process standpoint, ACOs have the potential to streamline multiple functions on an organizational level. However, for administrators to achieve better process management, several requirements have to be met, for example: integration of IT and technology, cooperation between different groups within an organization, and mastering new types of business intelligence.
To learn more about how healthcare industry can better transition to Accountable Care Organizations, read the full article ACOs: The Good, the Bad and the Ugly.