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.

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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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