The Queens County Medical Association in New York City is about to launch an all-physician accountable care organization. Barry Kaplan, MD, an oncologist on the board of the medical association, explains how the ACO would function.
1. Starting off with 40 investors. In the first week of January, 40 shares in the new organization at $2,500 a share will be for sale to physicians, raising a total of $100,000. There could be a second offering later.
2. Hospitals shouldn't be creating ACOs. Area hospitals are starting ACOs, but "my feeling is that hospitals should not be setting up ACOs," Dr. Kaplan says. ACOs' quest to save money will involve admitting fewer patients, but "it is not in the hospital's interest to not admit patients," he says. "It's the fox guarding the henhouse."
3. Wide interest among society members. Of the 750 members in the medical society, more than 200 have attended several planning sessions on the physician-run ACO. Most members are in solo or small practices. To ensure wide representation, "we want only one physician from each practice to buy a share," Dr. Kaplan says.
4. Primary care physicians wanted. Planners also have talked about making sure at least one-third to one-half of all shareholders are primary care physicians, but no action has been taken on this. Primary care physician are valuable because "we would need enough patients in the ACO to make it attractive to specialists," Dr. Kaplan says.
5. Funds to be used for EMR. Part of the $100,000 raised from physician-owners would be used to connect practices with EMRs or to help non-EMR practices set up EMRs. The funds would be supplemented with federal payments to practices that meet "meaningful use" requirements for healthcare IT, starting in 2011.
6. Physicians will have to create standards. Since ACOs will be designated in January 2012, "the time is very short," Dr. Kaplan says. Physicians in the ACO will have to create standards of care, a lengthy process in which physicians work in specialty-based committees to determine best practices for treating a variety of conditions.
7. ACOs for ethnic physicians may follow. The Chinese physicians' IPA in Queens has 450 members, sufficient for a strong ACO. There are also enough Korean physicians in the borough to create another ACO.
Learn more about the Queens County Medical Association.
1. Starting off with 40 investors. In the first week of January, 40 shares in the new organization at $2,500 a share will be for sale to physicians, raising a total of $100,000. There could be a second offering later.
2. Hospitals shouldn't be creating ACOs. Area hospitals are starting ACOs, but "my feeling is that hospitals should not be setting up ACOs," Dr. Kaplan says. ACOs' quest to save money will involve admitting fewer patients, but "it is not in the hospital's interest to not admit patients," he says. "It's the fox guarding the henhouse."
3. Wide interest among society members. Of the 750 members in the medical society, more than 200 have attended several planning sessions on the physician-run ACO. Most members are in solo or small practices. To ensure wide representation, "we want only one physician from each practice to buy a share," Dr. Kaplan says.
4. Primary care physicians wanted. Planners also have talked about making sure at least one-third to one-half of all shareholders are primary care physicians, but no action has been taken on this. Primary care physician are valuable because "we would need enough patients in the ACO to make it attractive to specialists," Dr. Kaplan says.
5. Funds to be used for EMR. Part of the $100,000 raised from physician-owners would be used to connect practices with EMRs or to help non-EMR practices set up EMRs. The funds would be supplemented with federal payments to practices that meet "meaningful use" requirements for healthcare IT, starting in 2011.
6. Physicians will have to create standards. Since ACOs will be designated in January 2012, "the time is very short," Dr. Kaplan says. Physicians in the ACO will have to create standards of care, a lengthy process in which physicians work in specialty-based committees to determine best practices for treating a variety of conditions.
7. ACOs for ethnic physicians may follow. The Chinese physicians' IPA in Queens has 450 members, sufficient for a strong ACO. There are also enough Korean physicians in the borough to create another ACO.
Learn more about the Queens County Medical Association.