Wednesday, November 10, 2010

5 Questions: Should a Hospital Develop an ACO?

Becker's Hospital Review reports on how to determine whether a hospital should develop or join an accountable care organization (ACO). Since the new health law passed, "hospitals and other providers across the country have been working to decide if they should develop ACOs in an effort to participate in the program. These entities, however, require considerable infrastructure, resources and cost, and have no guarantees of success. As such, many providers are unsure if the risk associated with developing an ACO is worth the potential payoff."

The article outlines five questions that hospitals should consider when weighing whether to become involved in an ACO. The questions include: "What is the hospital's relationship with its physicians?," "Does the hospital have a large enough primary care provider base?" and "What other providers could be involved?"