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Inner City Hospitals Are Ready For New Jersey's Medicaid ACO Program
January 26, 2012
Hospitals and physicians in New Jersey's inner cities are eager to participate in the Medicaid accountable care organization program and plan to pursue it aggressively once the state legislation earns federal approval, according to an NJ Spotlight report.
New Jersey enacted legislation for Medicaid ACOs in Camden, Trenton, Newark and other cities last year. Under the program, ACOs would receive a portion of the money Medicaid saves through reduced emergency department visits and other hospital services. Medicaid is half funded by the federal government, though, so the program is still awaiting a federal nod before providers can jump in.
New Jersey's Dept. of Human Services is proceeding and writing ACO regulations it expects to issue in late summer or early fall. Once federal approval is in place, the state will begin to accept Medicaid ACO applications from urban healthcare providers.
New Jersey Sen. Joseph Vitale sponsored the ACO legislation and said the program will "save the state and the federal government millions of dollars a year," according to the report.
Related Articles on ACOs:
Dr. Donald Berwick Defends ACOs in Expert RoundtableSurvey: 55% of Payors Plan to Participate in ACOs Over Next 3 Years
Survey: 57% of Hospital Leaders Still Unsure About ACO Participation
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