Although CMS' regulations for accountable care organizations have not yet been released, it is believed by some that the regulations will favor larger ACOs over smaller ones, according to a report by Crain's Detroit Business.
David Spahlinger, MD, executive director of the University of Michigan Faculty Practice Group, who has met with officials overseeing the regulations, said larger ACOs will likely be allowed to demonstrate a lower percent of savings compared to fee-for-service costs than smaller ACOs, according to the report.
Dr. Spahlinger also said a Michigan ACO would likely need to cover 25,000 to 30,000 people in order to create a large enough savings under the shared savings model, according to the report. The healthcare reform law only requires ACOs to cover 5,000 Medicare beneficiaries.
Read the Crain's Detroit Business report on accountable care organizations.
Read more coverage on accountable care organizations:
- Antitrust Oversight of ACOs Should be Shared, Senators Urge
- FTC, Justice Department Struggle to Compromise on Antitrust Guidance for ACOs
David Spahlinger, MD, executive director of the University of Michigan Faculty Practice Group, who has met with officials overseeing the regulations, said larger ACOs will likely be allowed to demonstrate a lower percent of savings compared to fee-for-service costs than smaller ACOs, according to the report.
Dr. Spahlinger also said a Michigan ACO would likely need to cover 25,000 to 30,000 people in order to create a large enough savings under the shared savings model, according to the report. The healthcare reform law only requires ACOs to cover 5,000 Medicare beneficiaries.
Read the Crain's Detroit Business report on accountable care organizations.
Read more coverage on accountable care organizations:
- Antitrust Oversight of ACOs Should be Shared, Senators Urge
- FTC, Justice Department Struggle to Compromise on Antitrust Guidance for ACOs