5 Reasons Hospital Execs are Skeptical of ACOs

Nearly half of hospital executives — 46 percent — have no plans to form an accountable care organization or implement a similar model in the near future, according to a recent survey conducted by Purdue Healthcare Advisors.

The ACO model is still seen as risky by many hospital CEOs. They cited the following reasons as to why they won't implement the model soon:

• Too many unknowns, need stronger evidence and a consistent, successful model — 52 percent
• Hospital is too small for an ACO — 49 percent
• Financial investment currently outweighs potential incentives — 26 percent
• Performance benchmarks are unrealistic for their hospital — 13 percent
• Transition would overwhelm the staff — 4 percent

The data is based on responses from 206 hospital executives at the director level or above conducted from Oct. 24 though Oct. 30.

More Articles on Accountable Care Organizations:
Orlando Health Creates ACO With Florida Blue
25 ACOs to Know in the Midwest
What ACOs Mean for Hospital Labor Relations

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