5 Important Findings on ACOs

1. Approximately 40 percent of healthcare administrators and physicians say physician-staffing alignment is the biggest challenge with accountable care organizations. A June survey based on 882 responses found 40 percent attributing delayed progress towards ACOs to alignment. After physician and staff alignment, 31.4 percent of respondents attributed the delay in ACO formation to a lack of capital and 26.2 percent cited a lack of integrated IT systems.

2. ACO start-up costs can peak to as much as $26.1 million. A May study projected the start-up costs of ACOs to be between $11.6 million and $26.1 million. These findings were significantly higher than the original estimate of $1.8 million by the Centers for Medicare & Medicaid Services in its proposed rule.

3. More than 70 percent of hospital executives have cynical view of ACOs. In a February survey, 74 percent of hospital executives said they are cynical of the effect of medical homes and ACOs will have on their bottom lines. Of that percentage, two-thirds of hospital executives said the new models will cause hospital margins to slide.

4. Nearly half of physicians do not know what an ACO is. In January, a survey found 45 percent of physicians did not know what an ACO was. Further, 65 percent said the quality of healthcare would deteriorate in the next few years as healthcare reform provisions, including ACOs, go into effect.

5. More than 45 percent of employers want to develop ACOs. A national employer survey from January found more than 45 percent of all and 52 percent of large employers want to develop ACOs. Nearly 60 percent also wanted to replace fee-for-service with bundled payments.

Related Articles on ACOs:
Analysis of Comments on ACOs Finds Certain Regulations Sparked More Concern Than Others
5 Thoughts on ACOs From Healthcare Leaders
ACOs: Spend Now to Save Later?

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