Oregon experiment will provide insight into ACO-based reform

February 14, 2013
Oregon experiment will provide insight into ACO-based reform
The outcome of the Oregon experiment, an ambitious program centered on a model of an accountable care organization (ACO), will offer important lessons for the wider implementation of ACOs as cost-saving mechanisms, according to a perspective piece published online Feb. 13 in the New England Journal of Medicine.

(HealthDay)—The outcome of the Oregon experiment, an ambitious program centered on a model of an accountable care organization (ACO), will offer important lessons for the wider implementation of ACOs as cost-saving mechanisms, according to a perspective piece published online Feb. 13 in the New England Journal of Medicine.

Eric C. Stecker, M.D., M.P.H., from the Oregon Health and Science University in Portland, described the Oregon experiment, centered on a coordinated care organization (CCO, based on the ACO), which includes escalating Medicaid financing and . The health plan is designed to yield faster cost savings without compromising on quality. Health Authority funding is stable for the first year of the program on condition that the program achieves a 2 percent reduction in the rate of growth in per capita Medicaid spending by the end of the second year, otherwise there are large penalties.

According to the report, the reform principles emphasized in the Health Plan, including expansion of disease-management programs and patient-centered medical homes, have not been shown to reduce costs. Other challenges include the lack of integration among contracted and mixed models of reimbursement of the different CCO-contracted organizations, which may undermine efforts to improve efficiency.

"Overall, the Oregon experience highlights several important considerations regarding formation, implementation, and performance characteristics that policymakers and payers should consider when contracting with ACOs," the authors write. "Regardless of outcome, this experiment will hold crucial lessons for ACO-based reform."

Explore further: ACOs find risks, opportunities in quest for reduced costs, improved quality

More information: Full Text

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merthin
not rated yet Feb 14, 2013
ACO's are a pipe dream and make no economic sense. They are founded upon totally unproven ideas such as coordinated care and patient centered medical homes...which require huge, expensive, staffed bureaucracies. As the article points out, none of these have been shown to reduce costs.

But the more of these that fail, and the sooner, the better it will be.

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