SALT LAKE CITY, June 13, 2012 (GLOBE NEWSWIRE) -- Accountable Care Organizations, commonly referred to as ACOs, now stretch across 45 U.S. states and the District of Columbia. In total, 221 ACOs have been identified — a 38 percent increase compared to those identified just six months ago. ACO activity in the private sector outnumbers the government sector by a factor of four to one. The majority of ACOs are found in larger metropolitan regions. These and other findings are contained in the updated report authored by Leavitt Partners titled, "Growth and Dispersion of Accountable Care Organizations," available at aco.leavittpartners.com.
"The consistent growth in the number and variety of organizations adopting accountable care demonstrates the momentum of the ACO movement," said Andrew Croshaw, a partner and managing director of the health care practice at Leavitt Partners and one of the authors of the study. "Many providers appear to believe the accountable care model is an important component of the future of American health care."
Central to the accountable care movement is the emerging acknowledgment that the fee-for-service payment approach in this country no longer meets the needs of patients or their providers. This shift in mindset has been developing for over a decade and is now being adopted under the name "accountable care." The vast majority of ACOs and accountable care models have arisen from the private sector. Medicare accountable care programs are an outgrowth of the private sector movement, not a driving force behind it.
Growth and Dispersion of Accountable Care Organizations report findings
Key findings from the Leavitt Partners report include the following:
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The number and types of ACOs are expanding. 221 ACOs in 45 states are testing multiple and varied models of sharing risk. This tally is up from 160 ACOs in 40 states identified in the November 2011 report.
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Growth is occurring in large population centers, where multiple ACOs compete with each other.
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Hospital systems sponsor the majority of ACOs, but ACOs backed by physician groups have seen the most recent growth.
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The private sector is embracing new payment and care delivery arrangements. The presence of ACOs doing business among and between private sector payers and providers outnumbers that of the government sector by a factor of four to one.
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Non-Medicare ACOs are experimenting with more diverse models than Medicare-backed ACOs.
- The success of any particular ACO model is still undetermined.
This report is the second of its kind released by Leavitt Partners. The first report, released in November 2011, has been quoted widely. Both reports document the growth and dispersion of the accountable care movement and provide a baseline for understanding future development.
Though insufficient data exists to show that ACOs are the answer to the cost-quality conundrum facing American health care, it is clear that leading organizations across the payer and provider sectors are increasingly experimenting with ACOs as a tool to contain costs and improve quality.
For more information about Leavitt Partners and to receive a free copy of the report, visit aco.leavittpartners.com.
About Leavitt Partners
Leavitt Partners is a health care intelligence business. Through its member-based collaboration called Health Intelligence Partners™ and direct client services, the firm provides the best available window to the future of American health care. For more information visit LeavittPartners.com or call (801) 538-5082.