Can Accountable Care Organizations Improve the Value of Health Care by Solving the Cost and Quality Quandaries? - Summary

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Abstract

Experts agree that the way health care is currently paid for in the United States, especially in the traditional, fee-for-service Medicare program, does not support coordinated care that is high quality and cost-efficient. To address these problems, policy-makers are taking a close look at accountable care organizations (ACOs).

This policy brief explores what ACO are, how they compare to previous reform concepts such as Health Maintenance Organizations and Provider Sponsored Organizations, key design and implementation issues, and opportunities and challenges.

The authors conclude that ACOs are no real game changers in the short term, but are nevertheless important to try.

Introduction

One of the major issues being debated in current health reform discussions is how to slow rising health care costs and still achieve quality health care for patients. Policy-makers have discussed accountable care organizations (ACOs) as tools to slow rising health care costs and to improve quality in both the traditional Medicare program and in private insurance programs. A new policy brief released today by the Urban Institute and the Robert Wood Johnson Foundation provides a comprehensive look at ACOs.

The following is a brief summary of the areas covered in the policy brief, which covers:

• The definition of an ACO
• Design issues that still need to be tested and resolved
• Implementation challenges
• Reasons for skepticism.

(End of excerpt. The entire summary is available in PDF format.)

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