The current estimated start-up and first-year costs to establish and sustain core competencies for accountable care organizations are higher than the original estimate of $1.8 million by the Centers for Medicare & Medicaid Services in its proposed rule, according to an AHA News Now report.
A new study prepared for AHA by McManis Consulting projects the costs to be between $11.6 million and $26.1 million, according to the report. The new numbers are based on four case studies of organizations that took steps to manage the care of a defined population, which is similar to an ACO.
The study was completed prior to the release of the ACO proposed rule and doesn't include estimates of the costs of meeting the rule's specific requirements. It does identify 23 different capabilities to be developed across four categories to achieve the transformation in care: network development and management, care coordination, clinical information systems and data analysis.
Read the report on estimated costs for an ACO.
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3 Key Concepts Surrounding Tax-Exemption and ACOs
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A new study prepared for AHA by McManis Consulting projects the costs to be between $11.6 million and $26.1 million, according to the report. The new numbers are based on four case studies of organizations that took steps to manage the care of a defined population, which is similar to an ACO.
The study was completed prior to the release of the ACO proposed rule and doesn't include estimates of the costs of meeting the rule's specific requirements. It does identify 23 different capabilities to be developed across four categories to achieve the transformation in care: network development and management, care coordination, clinical information systems and data analysis.
Read the report on estimated costs for an ACO.
Related Articles on ACOs:
3 Key Concepts Surrounding Tax-Exemption and ACOs
10 Key Factors for Hospital CEO Success in Era of Reform
6 Building Blocks of a Technology Framework for ACOs