ACO Benefits May Not Reach Underserved Communities

Medically underserved communities may not be able to reap the rewards of accountable care organizations, according to a report by The George Washington University School of Public Health and Health Services.

The report, "Medicare's Accountable Care Organization Regulations: How Will Medicare Beneficiaries who Reside in Medically Underserved Communities Fare?" suggests that underserved communities will be excluded from ACOs because of the barriers to health center-formed ACOs and federally qualified health centers.

The authors said underserved communities are at a disadvantage because the Affordable Care Act prohibits health center-formed ACOs from participating in the Medicare Shared Savings Program and the assignment of FQHC Medicare patients to ACOs for shared savings purposes.

According to the report, the ACA excludes the poorest beneficiaries with the highest health risks, penalizes medically underserved communities that lack primary care physicians, disincentivizes health centers' affiliation with hospitals and specialty practices and impacts the ability of health center patients to participate in other shared savings programs, such as Medicaid and CHIP.

Read the George Washington University School of Public Health and Health Services report on the effect of accountable care organizations on medically underserved communities (pdf).

Read more coverage on accountable care organizations:

- Nursing Home Leader Bids for Role in ACOs

- 6 Areas of Start-up Costs for ACOs

- 3 Key Deficiencies of ACOs From the Heritage Foundation

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