Accountable Care Organizations Struggle With Health IT Infrastructure - InformationWeek
Healthcare // Clinical Information Systems
10:47 AM
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>>

Accountable Care Organizations Struggle With Health IT Infrastructure

Lack of integrated systems, fragmentation of third-party applications for population health management hamper many accountable care organizations.

8 Accountable Care Organizations Worth Closer Examination
8 Accountable Care Organizations Worth Closer Examination
(click image for larger view and for slideshow)
Accountable care organizations (ACOs) are taking a variety of approaches to building health IT infrastructures, according to a forthcoming report from Leavitt Partners, a research firm in Salt Lake City, and KLAS Research, which is based in Orem, Utah. But it's clear that healthcare organizations with integrated clinical and financial systems have an early lead in the race to assemble these new healthcare reform models.

Leavitt Partners, which has previously released two reports on ACOs, held a webinar recently to outline the report's key findings. Among other things, the researchers identified 320 ACOs, up from 220 in a June 2012 report. In the latest findings, 158 ACOs were sponsored by hospital systems; 133 by physician groups and individual practice associations; 30 by health plans; and eight by community-based organizations.

Leavitt Partners surveyed all 320 ACOs, and KLAS conducted interviews with leaders of 60 organizations. From this information, they constructed a view of ACOs' health IT infrastructure that they shared with InformationWeek Healthcare.

ACO leaders agreed that they need clinical information systems that can enable them to do population health management (PHM) -- a systematic approach to keeping patients healthy and ameliorating the effects of chronic diseases. But the applications they were investing in varied from general-purpose business intelligence software from IBM or Oracle to more targeted applications from companies like Medventive, Wellcentive and Phytel, said Colin Buckley, strategic operations director for KLAS, in an interview with InformationWeek Healthcare.

[ Practice management software keeps the medical office running smoothly. For a closer look at KLAS's top-ranked systems, see 10 Top Medical Practice Management Software Systems. ]

The population health management (PHM) software market is wide open, with a bewildering diversity of products, he added. "There is no one or two vendors that own this space, and the functionality and the offerings are very fragmented."

To coordinate patient care effectively -- a key part of PHM -- 77% of the ACO survey respondents said it was important to deploy care managers. Sixty percent said patient-centered medical homes were essential and 60% viewed the use of electronic patient registries as a key part of their care coordination strategy.

Buckley cautioned that the definition of registries differs from one ACO to another. Some view them as a part of their electronic health record systems, which may be able to generate lists of patient subgroups, such as diabetics and information about their health status. Other ACOs use third-party software that has the ability to generate reports and alerts from registries. And some large organizations have designed their own registries for use with their sophisticated data warehouses.

More than three quarters of the respondents said that clinical systems integration was critical or important. Buckley said that most of these ACOs were referring to the integration of inpatient and outpatient information within an enterprise, rather than across multiple provider entities.

"Many of them thought it was important to move to a vendor like Epic or Cerner that has all of the pieces connected and stores information in a single database, versus having one vendor for the hospital, several in the ambulatory sites and other best-of-breed products that they would have to tie together," according to Buckley.

Physician-led ACOs, which are growing faster than those led by hospitals, tend to have a somewhat different view because they consist of multiple entities that frequently have disparate EHRs, Buckley noted. The most efficient way to integrate these systems is by using a health information exchange (HIE). Some of these physician-led ACOs were interested in acquiring their own HIEs because they didn't see much point in connecting with hospitals, he said.

"Not all of them feel they need to tie the hospital in, because their goal is to keep people from going to the hospital in the first place."

Other physician-sponsored ACOs might use community HIEs where they exist. But there are a few problems with that, Buckley pointed out. First, public HIEs are growing much more slowly than private exchanges purchased by hospital systems. Second, it's very expensive and time-consuming to connect with HIEs, and most of them are not very good at moving information yet, he said.

Access to fragmentary data on some patients is not good enough for ACOs, he said. "They need the data ahead of time and they need it to be comprehensive and as up to date as possible. It's just not working that way for the majority of organizations that don't have an integrated system like a Cerner or an Epic."

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
User Rank: Apprentice
1/9/2013 | 3:58:23 PM
re: Accountable Care Organizations Struggle With Health IT Infrastructure
will ACO's act as a Centralized Business office and process physician orders for patients? What type of infrastructure will they need? Will ACO's receive anything from the Physician or hospital - how do they interact with patient, physician or hospital?
User Rank: Apprentice
11/28/2012 | 3:49:27 PM
re: Accountable Care Organizations Struggle With Health IT Infrastructure
Moving to an integrated system like Cerner, Epic, or NextGen is a vital part in accessing patient data to avoid fragmentation. Without serious public funding, public HIEs will continue to have slower growth than private HIEs with large hospital/client backing; although long-term public HIE solutions may be a better fit for patient's needs.

Jay Simmons
Information Week Contributor
User Rank: Apprentice
11/20/2012 | 3:49:08 PM
re: Accountable Care Organizations Struggle With Health IT Infrastructure
ACOs need to pay attention to their membership accounting, too. The changes that Social Security transmits to CMS affect Medicare HIC#s. If the ACO is not tracking and adjusting these to match to CMS, reconciling them to receive proper payments will become an impossible task to verify expected CMS payments against what CMS says it owes.
User Rank: Apprentice
11/20/2012 | 1:36:50 PM
re: Accountable Care Organizations Struggle With Health IT Infrastructure
Hi My first post to this site and as I work in the English NHS it was some of the terms used in the article that I was particularly interested to understand further.

Reference to:

"important to deploy care managers" (Q: Where and in what settings?)

"patient-centered medical homes were essential" (Q: Are these similar to English Nursing Homes and English Residential Homes?) Do they exist for patient convalescence?

"the use of electronic patient registries as a key part of their care coordination strategy". (Q: Could someone explain electronic patient registries for me please?). Are these what I would know as "Disease or Condition based Registers"?

Any clarification of the above would be most useful.

Kind regards
Steve Bryant (

How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll