The Economics of Provider Payment Reform: Are Accountable Care Organizations the Answer?

This article questions the consensus that FFS must go. If the fees are too high, then someone needs to "bite the bullet" and reduce fees in key areas. Hoping to control overspending by investment in ACOs is wishful thinking. I describe the theory and practice of shared savings payment systems and summarize recent TCOC contracting initiatives in the private sector. Medicare's shared savings approach is likely to be less effective than private contracts. Cutting providers' fees would be more efficient. Finally, the new payment models in the Affordable Care Act will not ease the problem of high prices for private payers.
Source: Journal of Health Politics, Policy and Law - Category: Health Management Authors: Tags: Health Policy & Education, Political Science, General, Public Policy Part II: What Do We Want ACOs to Achieve and Can They Do It? Source Type: research