Kaiser Health News Shows How 6 Healthcare Sectors View ACOs

While hospitals and physicians' views on accountable care organizations are well known, six other healthcare sectors shared their views on how ACOs would affect them during the federal agencies' Oct. 5 listening session on ACO regulations, according to a report by Kaiser Health News.

1. Employers and other payors. They fear ACOs will give large hospitals more market power and lead to price increases. They want ACOs to improve care and slow down the rise in costs. "We have not been getting our money's worth and quality of care has varied," said Mary Jo Condon, director of public affairs for the St. Louis Area Business Health Coalition, in the report.

2. Pharmacists.
In ACOs, they see themselves as partners with physicians and hospitals, helping to ensure appropriate drug use, which could lower spending. But pharmacists' role in an ACO also carries financial risks if they can't help control drug compliance.

3. Device makers.
Their chief concern is that physicians would use less costly devices instead of what works best for the patient. "We are worried about the market power ACOs may wield," said Ann-Marie Lynch, executive vice president of the Advanced Medical Technology Association, in the report. "It may present significant risks to patients."

4. Medical imaging, radiotherapy industry. This sector has similar issues as the device makers. It seems that "the incentive is to reduce the volume of procedures, regardless of whether or not they're appropriate," said Dave Fisher, executive director of the Medical Imaging & Technology Alliance, in the report. He added that when physicians and hospitals join forces under ACOs, "we just want to be sure it's done in a fair way that preserves competition."

5. Home infusion companies. They hope for expanded Medicare coverage of healthcare services in the home. "We are evaluating this model because it has the opportunity to be a game-changer," said John Magnuson, vice president of National Home Infusion Association, in the report. "This could be a way to open the door to home-infusion therapy in Medicare."

6. Community health centers.
While such centers may have better access to diagnostic services and treatment for patients in an ACO, they risk losing autonomy and could face pressure to lower costs. Dan Hawkins, senior vice president for policy and research at the National Association of Community Health Centers, is advising members to hold off joining any ACOs until they know more.

Read Kaiser Health News' report on ACOs.

Read more coverage of the Oct. 5 listening session on ACO regulations:

- Are ACOs Promoting More Mergers and Acquisitions, FTC Asks

- FTC: How Big Does an ACO Need to be?

- What Financial Incentives Should ACOs Work Under, FTC Asks

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