Accountable care organizations' start-up costs average $2 million over the first 12 months, according to a report from the National Association of ACOs.
Technology accounts for a large percentage of start-up costs, as the average ACO spends almost $900,000 on IT. The approximate average expenditures vary based on the number of beneficiaries in the ACO:
- 5,000-10,000 beneficiaries: $510,000 ($200,000 for internal costs such as IT staff, $310,000 for external costs such as vendor contracts)
- 10,000-15,000 beneficiaries: $760,000 ($470,000 internal, $290,000 external)
- 16,000-25,000 beneficiaries: $1,620,000 ($900,000 internal, $720,000 external)
- 26,000 or more beneficiaries: $93,000 ($340,000 internal, $590,000 external)
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