At issue is whether federal regulators will allow consolidation of providers that would drive up fees rather than create more efficient processes.
Karen Ignagni, chief executive of America’s Health Insurance Plans, the health insurers’ trade group, warns that more consolidation under ACOs will lead to price increases. But CMS Deputy Administrator Jonathan Blum said the ACO program wouldn’t create incentives for services to move to a hospital setting.
However, “the potential financial impact of the new program isn’t yet clear,” the Journal said, noting that the Medicare Physician Group Practice Demonstration, the model for the ACO program, had “mixed results” in saving money.
ACO supporters say that data-tracking tools such as electronic health records should help the ACOs accomplish their goals.
The Journal report cited new ACO-like experiments at Tucson Medical Center, the Billings Clinic and Fairview Health Services.
Read the Wall Street Journal report on ACOs.
Read more coverage on whether ACOs can save money:
– Hospital Mergers and ACO Collaboration Leaves Consumers Concerned About Cost
– FTC: What Attributes Does an ACO Need to Have?
– Are ACOs Promoting More Mergers and Acquisitions, FTC Asks
