New Accountable Care Model Could Save $1.1B - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Healthcare // Analytics
News
12/28/2011
03:36 PM
50%
50%

New Accountable Care Model Could Save $1.1B

32 healthcare organizations chosen to participate in CMS' new Pioneer ACO initiative will begin trial usage of the model in January.

12 EHR Vendors That Stand Out
12 EHR Vendors That Stand Out
(click image for larger view and for slideshow)
The new Pioneer Accountable Care Organization initiative set to launch in January in 32 healthcare organizations across the country could save up to $1.1 billion over five years, said the Centers for Medicare & Medicaid Services (CMS).

The initiative, which will be managed by the CMS Innovation Center, marks a significant step in the U.S. Department of Health and Human Services' (HHS) efforts to encourage primary care doctors, specialists, hospitals and other caregivers to offer coordinated care for Medicare beneficiaries.

According to HHS, the Pioneer ACO initiative will test the effectiveness of several innovative payment models as a way to help experienced organizations provide better care for beneficiaries, work in coordination with private payers, and reduce Medicare cost growth. These goals will be achieved as health organizations move away from a payment system based on volume under the fee-for-service model toward a system based on a pay-for-performance model of care.

[ Accountable care requires deeper data analysis. See Accountable Care Lives Or Dies On Performance Data. ]

The Pioneer ACO model requires ACOs to engage other payers in similar efforts to reward healthcare providers that deliver high-quality care. The model is designed for organizations with experience providing integrated care across healthcare settings, and includes strict beneficiary protections, including the ability for patients to seek care from any Medicare provider they wish.

The Pioneer ACO is one of several ACO models, which also include the Medicare Shared Savings Program and the Advance Payment ACO Model, which were announced in October.

"We know that healthcare providers are at different stages in their work to improve care and reduce costs," Marilyn Tavenner, acting administrator of CMS, said in a statement. "That's why we've developed a menu of options for Medicare to meet doctors, hospitals, and other healthcare providers where they are, and begin the conversation of how to enhance the care they are offering to people with Medicare."

Among those participating in the Pioneer ACO program is the San Diego, Calif.-based Sharp HealthCare Accountable Care Organization, which is comprised of an integrated health system that serves nearly 32,000 Medicare beneficiaries in San Diego County.

Officials at Sharp HealthCare see their participation in the Pioneer ACO program as a way to leverage their investments in health information technology to support care coordination and facilitate communication between patients, their physicians and their healthcare team.

"Sharp HealthCare has been investing in electronic medical records and data analytics and we will use point of care tools that enable all members of the healthcare team to see what a patient needs and communicate their findings and actions," Jerry Penso, medical director, Continuum of Care at Sharp Rees-Stealy Medical Group, told InformationWeek Healthcare. "We will continue to expand the functionality of Sharp's patient portal to empower patients to manage their conditions and partner with their care team in improving their health."

When are emerging technologies ready for clinical use? In the new issue of InformationWeek Healthcare, find out how three promising innovations--personalized medicine, clinical analytics, and natural language processing--show the trade-offs. Download the issue now. (Free registration required.)

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Study Proposes 5 Primary Traits of Innovation Leaders
Joao-Pierre S. Ruth, Senior Writer,  11/8/2019
Slideshows
Top-Paying U.S. Cities for Data Scientists and Data Analysts
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/5/2019
Slideshows
10 Strategic Technology Trends for 2020
Jessica Davis, Senior Editor, Enterprise Apps,  11/1/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
Slideshows
Flash Poll