At the height of the HMO movement, 90 million lives were covered under HMOs. Develop engagement strategies with IDNs and physician groups whose ACO contracts account for the most patients and highest level of financial risk for providers. The US healthcare system is moving towards a value based care model, and ACOs are a key component to the conversation. The unique market dynamics of the ACO movement are driven, in part, by the shadow of the HMO movement of the 90s, according to David Muhlestein, PhD, director of research at Leavitt Partners, who spoke May 9 at the Becker's Hospital Review 6th Annual Meeting in Chicago. For more information on our use of cookies, please review our cookie policy. However, Dr. Muhlestein noted, these reasons will not be the same ones that motivate the organizations currently hanging back. Other influential systems have also been waiting on the sidelines. This increased trend of risk based contracting means that more organizations have skin in the game; If an ACO can’t deliver on the metrics they are bound to, they lose the incentives and risk owing for losses incurred. Using PowerProfiles to help facilitate the development of these strategies, our customers can navigate the shift from volume to value and understand how leading organizations bear risk, measure outcomes, and drive population health. Future ACO growth will be heavily dependent upon strategy, according to Dr. Muhlestein. "Even though it was a lukewarm market, that dominant provider can push things forward," he said. "There is still a minority of total lives under risk.". DRG is the premier provider of healthcare analytics, data and insight products and services to the world’s leading pharma, biotech and medical technology companies. Interested in LINKING to or REPRINTING this content? Though ACOs are often described as groups of health care providers, nearly 4 in 10 ACOs partner with a management company for services such as financial investment, contracting, data analytics, and care management, according to recent research. While the growth of accountable care organizations is inching forward at a national level, it is starting to gain clout in specific markets across the country. While the growth of accountable care organizations is inching forward at a national level, it is starting to gain clout in specific markets across the country. The structure of an ACO can include Medicare, commercial or Medicaid patients, or any combination thereof, to help facilitate the transition within the US healthcare system to a lower cost, higher value service. All Rights Reserved. DRG's comprehensive suite of Market Access solutions help our clients put together the perfect market access strategy. Deeper insights. Now every major hospital system and physician group in the Chicago area has created an ACO, either commercially or with Medicare, Dr. Muhlestein said. The failure of the HMO payer-driven model has caused some providers to wait in the wings in regards to ACOs — either for the movement to pass or for it to be tested thoroughly before they put their own organizations at risk. "We haven't seen dominant penetration anywhere across the country," Dr. Muhlestein said. Leverage our expertise to support segmentation and targeting exercises. DRG uses cookies to improve your experience on this website. 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