Wednesday, November 02, 2011
The role of Accountable Care Organizations in reform health care
Much of the medical treatment being provided today is done by MDs, Labs, Hospitals and other facilities indpendent of each other. This approach is called a fee for service system and has a lot of inefficiencies. As a way to more away from fee for service the Federal level health reform provided funding to establish what are called Accountable Care Organizations (ACO). This new approach involves a significant change in technology to support the delivery of medical treatment. It will effect not only providers but for you and I as consumers of health care services. When ever a change as significant and expensive as this takes place there will be considerable debate over whether it will be effective. This is certainly the case with ACOs. It is important for employers to understand this change as it begins to evolve, since it may lower the cost of delivering medical treatment. The way a ACO develops will not be the same in all areas. Consumers should also be aware since they will begin to notice changes in the way services are provided as ACOs are implemented over a period of time. I recently became aware of and want to share a report by the Institute for Health Technology Transformation. It details ten useful things to understand about this approach. It provides some interesting insight into accountable care organizations (ACOs).