Accountable Care Organizations: A Dangerous Regulatory Leap of Faith


While the general public has focused its present attention upon the controversial requirement that all citizens be required to purchase health insurance, the Patient Protection and Affordable Care Act of 2010 (“the Act”) raises potentially dire issues for physicians, physician groups, hospitals and consumers of medical care alike. The most vexing proposal calls for the creation of Accountable Care Organizations (“ACO’s”). In general, the Act envisions ACO’s as entities comprised of networks of doctors, physician groups and hospitals that somehow share collective responsibility for providing care to Medicare insured patients.i Indeed, while member physicians need not be part of the same hospital system, they will be jointly required to manage the full spectrum of the health care needs of its Medicare insured members (a minimum of 5,000) for at least three years.

As a result of this ambitious initiative, the Government estimates that ACO’s may save Medicare up to $960 million in the first three years of the program and the offer financial incentives for physicians to “buy in”. Proponents say that the ACO model allows successful participants to share in the savings if certain medical care quality objectives are achieved; if financial savings are demonstrated and if the organization implements programs that measure its clinical and cost-saving acumen. Here is another proviso: under existing plans, ACO’s meeting benchmarks would not obtain their elusive share of savings for eighteen to twenty-four months after the ACO began investing in the program.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ruskin Moscou Faltischek | Attorney Advertising

Written by:


Ruskin Moscou Faltischek on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.