News Feature | January 2, 2014

ACOs Will Double in 2014

Source: Health IT Outcomes
Katie Wike

By Katie Wike, contributing writer

Accountable Care Organizations will double in 2014; providers developing core ACO capabilities, including partnerships with payers and employers

Premier’s fall 2013 Economic Outlook C-suite survey predicts 2014 will see incredible ACO growth. According to Government Health IT, “More than 18 percent of 115 senior executive respondents – primarily CEOs (43.5 percent), chief financial officers, and chief operating officers – across 35 states say their hospitals currently participate in an ACO, up from 4.8 percent in spring 2012. This growth is projected to accelerate, with about 50 percent of respondents suggesting their hospitals will participate in an ACO by the end of 2014. Overall, 76.5 percent of respondents say their hospital does or will participate in an ACO.”

"The ACO transition is challenging for all providers, and it involves taking significant risks," said Wes Champion, senior vice president, Premier Performance Partners, in a news release. "It’s understandable and appropriate that some providers have been more deliberate and cautious about when they participate in an ACO. And it’s clear that many are now prepared to proceed."

Survey results also indicate “the majority of health systems are developing partnerships and making investments in the infrastructure necessary to better manage population health. Among investments:

  • Lifestyle and wellness coaching was most often cited overall by 71.6 percent of hospital executives.
  • Almost half of rural hospitals use virtual care or telemedicine to connect with patients, compared to 1 in 3 non-rural hospitals.
  • Patient-centered medical homes are also popular for non-rural hospitals, large hospitals and hospitals in an IDN.”

Access to integrated data with sophisticated population health status measurement is important to ACO formation. According to respondents, 50 percent are using predictive analytics to forecast patient/population needs and 46.3 percent are using an integrated data solution to reduce silos.

"Within our organization, clinical teams will always serve as the 'backbone' to the challenging work around population health,” said Michael P. Jeremiah, MD, FAAFP, chair of the Department of Family and Community Medicine at Carilion Clinic (Roanoke, Va.), which cares for nearly 1 million residents across 18 counties in western Virginia through its eight hospitals, primary and specialty physician practices, and other services. “But IT and health analytics provide the 'nervous system' that allow us to fully function and achieve optimal patient experiences and outcomes while controlling cost."

“Providers are building the infrastructure and core capabilities essential to ACO formation, whether or not they’re in an ACO,” Champion said. “This implies a new wave of ACO participants will likely emerge in future years as these partnerships mature.”

See the full report HERE

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