Disease-Specific ACOs Could Provide More Value

As primary care-centered accountable care organizations gained popularity across the country, a newer model of disease-specific ACOs has hit the scene and could provide more value than the original, according to an American Medical News report.

Patients with diseases like cancer and end-stage renal disease have more complex medical needs that cost more than those of the average patient. Therefore, according to the report, disease-specific ACOs can provide more value because they would reduce the cost of care for the most expensive patients.

The savings opportunities are there: In 2010, Medicare spent $32.9 billion on end-stage renal disease patients, and Medicaid and commercial payors spent $9.8 billion, according to the report. Also, $124.6 billion was spent nationwide on cancer treatments. The disease-specific ACOs would work to improve care quality and reduce the cost of caring for those patients.

Some disease-specific ACOs have already formed. Florida Blue has two oncology ACOs, one with Moffitt Cancer Center in Tampa, Fla., which was announced in December; and another with Coral Gables, Fla.-based Baptist Health South Florida and an oncology group, which was formed in May.

More Articles on ACOs:

Seeking External Validation: Q&A With the Crystal Run Healthcare ACO Team
28 Statistics on Providers and ACO Development
Managing Physician Relationships in an Accountable Care Model

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