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In a new book, Political Malpractice, Stan Hupfeld, the former CEO of Integris Health System in Oklahoma City, refers to accountable care organizations (ACOs) as being similar to the discredited HMOs of the 1980s and early 1990s. A former CEO friend, who sent me Stan’s excellent book, noted that he often hears ACOs referred to as “a wolf in sheep’s clothing.” He was surprised when I said I thought they were quite different.
We heard similar comments when the concept of an ACO was first introduced four or five years ago. For example, one of our partners said she could not see the difference between the old-fashioned primary care gatekeeper of the early HMOs and the patient-centered medical home. We see them as quite different.
In recent presentations on ACOs, we have used the following chart to show the major differences between ACOs and tightly managed care, which usually means HMOs.
For me, the ACO focus on those with chronic disease (#4) is a key difference. The HMO approach did not normally differentiate among subscribers; it treated a 27-year old indestructible male the same as a 59-year-old female with chronic obstructive pulmonary disease (COPD). As we know, the big dollars to be saved in health care are in doing a better job of managing the health care of patients with chronic illnesses, such as diabetes, COPD, or congestive heart failure.
On #3, the CEO of a primary care network that also accepts financial risk for specialty care told us that without risk adjustments in the Medicare population of the Medicare Advantage product, it would be impossible to make money on capitated payment. “With risk adjustment, we love taking care of older, sicker patients.” Risk adjustment was not part of most early HMOs.
Here are two questions for your consideration:
Dean C. Coddington is a senior consultant, McManis Consulting, Denver, and a member of HFMA’s Colorado Chapter.
Publication Date: Thursday, April 04, 2013
Tom Myers, chief strategy officer, The SSI Group, discusses the shifting payment environment and how it affects providers' patient access and claims management processes.
Jeff Chester, senior vice president and chief revenue officer at Availity, shares his thoughts on "Revenue Cycle 2.0" and how to best meet its challenges.
Mitch Morris, vice chair and global leader, healthcare, Deloitte, and Michael O'Rourke, senior vice president and chief information officer, Catholic Health Initiatives (CHI), share perspectives on the need for transformational IT in health care today.
Brian Kueppers, founder and CEO, Apex, discusses the importance of a robust patient payment strategy in boosting organization revenue and enhancing patient satisfaction.
Brian Grazzini, CFO, HealthPort, describes the importance of efficient and compliant information exchange and audit management in helping HIM staff spend less time on paperwork and more on mission-critical projects.
Cindy Matthews, executive vice president, Community Hospital Corporation, discusses how rural and community hospitals can use collaborative partnering to position for success through tough market conditions.
Rick Heise, senior vice president, revenue cycle, at Cerner Corporation, discusses the importance of integrating clinical and financial data to excel in health care’s changing payment environment.
Russ Graney, founder and CEO for Aidin, and John Laursen, head of business development for Aidin, share insights on how to improve care transitions between acute and post-acute care settings and incentivize high-quality patient outcomes.
Scott Elston, strategic accounts manager, GE Healthcare Services, describes how substantial cost reduction in health care requires rethinking business strategy and asset use.
Robert Williams, MD, director, Deloitte Consulting LLP, and Arielle Freiberger, product strategist, ConvergeHEALTH by Deloitte, explain how sophisticated retrospective, real-time, and predictive data analytics can inform decision making to reduce costs and improve care.
Stuart Hanson, director of business development (healthcare solutions) at Citi Retail Services, discusses how improving the payment experience can benefit consumers and healthcare providers.
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