Massachusetts Governor Proposes ACOs to Contain Costs

Massachusetts would encourage healthcare providers to form accountable care organizations under a new cost-containment plan proposed by Democratic Gov. Deval Patrick, according to a report by the American Medical News.

The cost-containment proposal, seen as the next step in the state's healthcare reform process, would also restructure the medical malpractice system and allow the state insurance commissioner to reject proposed insurance rate increases and review underlying physician payments.

The Massachusetts Medical Society gave the proposal a mixed review. "The reason we are interested in ACOs is because we believe coordination of care results in good quality of care," said medical society president A. Tolbert Coombs, MD.

But recalling past attempts to capitated provider payments more than a decade ago, Dr. Coombs was concerned physicians might not have enough authority within ACOs. "The challenge is to get in on the ground floor and have enough influence in it being done right," he said.

Read the American Medical News report on ACOs in Massachusetts.

Read more coverage of healthcare reform in Massachusetts:

- Massachusetts Medical Bankruptcies Continue, Despite State Health Reform

- Massachusetts Residents Forced to Use EDs Under State's Universal Mandate

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